Shareholders to elect new AIG directors at meet

AMERICAN International Group, the insurer rescued by a series of federal bailouts, is set to pad out its shrinking board tomorrow when a new slate of directors stands for election at its annual meeting.

The nominees will help rebuild a board decimated in the past year by seven resignations, one retirement and three other directors not standing for re-election.

The meeting, to be held on Wall Street, will be the first public opportunity for shareholders to vent frustration since the insurer's financial implosion last year.

Shareholders were all but wiped out as AIG recorded $US99 billion ($1.2 trillion) in losses last year, largely stemming from a financial product unit's foray into risky derivatives. Shares have plummeted to just above $US1 following the dilutive effect of the Government's move to take majority ownership.

AIG had delayed its annual meeting, usually held in May, to allow time to reshuffle directors. The board that emerges will feature many new faces.

Apart from George Miles and Morris Offit, who have served as directors since 2005, the 11-member board will have been entirely elected within the last year.
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Joining the board since 2008 were Suzanne Nora Johnson, a former Goldman Sachs vice-chairman; Dennis Dammerman, former General Electric Co finance chief, and Ed Liddy, chief executive and chairman, although he plans to stand down as soon as successors are found.

The rest of the board will be comprised of nominees: Harvey Golub, Laurette Koellner, Christopher Lynch, Arthur Martinez, Robert S. (Steve) Miller and Douglas Steenland.

The new board reflects the muscle wielded by federal authorities since taxpayers ponied up billions of dollars to keep AIG afloat. Trustees appointed to have oversight of the Government's 80 per cent stake in AIG wanted to shake up the board to raise corporate governance standards, they said last month.

At least seven of the new directors were recommended by either the US Treasury or the trustees.

In a May statement, Mr Liddy said "adding these individuals to the AIG Board will help AIG achieve its goals of maximizing the value of AIG's core businesses and repaying US taxpayers."

Mr Dammerman, tapped by government officials to join AIG's board last November, is leading the search for a new chairman and CEO.