Former American International Group Chief Executive Officer Maurice "Hank" Greenberg said the insurer is in "crisis" and should delay its...
Former American International Group Chief Executive Officer Maurice “Hank” Greenberg said the insurer is in “crisis” and should delay its annual meeting so shareholders can consider the impact of two losing quarters.
Investors need more time to discuss the record $7.81 billion first-quarter net loss disclosed last week before meeting in two days at AIG’s New York headquarters, Greenberg said in a regulatory filing Monday.
Greenberg, who controls the largest stake in the company, said shareholders have lost $80 billion in the past year.
CEO Martin Sullivan said last week that AIG needs $12.5 billion in capital and may face more write-downs after losses tied to debt markets.
Most Read Business Stories
- The penthouse atop Smith Tower is on the rental market for the first time
- Downtowns will be back, but Seattle has choices to make
- Washington state ‘literally failed workers,’ and fixing the unemployment system won't be easy
- Boutique cruise line Windstar will move its Seattle headquarters to Miami
- J&J’s 1-dose shot cleared, giving US 3rd COVID-19 vaccine
Greenberg, 83, who was forced out in 2005 amid sales and accounting investigations, Monday called recent quarters the worst in AIG’s history and questioned management’s decision to raise money by issuing shares.
“It’s just a constant thorn in everybody’s side,” said James Huguet, CEO of Tampa, Fla., Great Companies, which manages $350 million including 162,000 AIG shares. “The threats at management need to be curtailed. Hank has gotten extremely personal in this thing, and he’s not going to let it go.”
AIG spokesman Chris Winans said the board received the letter Monday but sees no need to postpone the annual meeting, which is scheduled for Wednesday.
New York’s insurance department is reviewing Monday’s filing by Greenberg to see if it violates an earlier mandate to stop shaking up AIG’s management, said spokesman David Neustadt.
Greenberg said in a November regulatory filing that he intended to approach investors concerned about AIG’s leadership, its stock performance and the possibility of selling units. He curtailed that effort two months later after New York Insurance Superintendent Eric Dinallo told him to stop.
“Several top shareholders of AIG have called me expressing deep concern about the persistent and seemingly endless destruction of value at AIG,” Greenberg said in the filing.
Greenberg controls at least 9.8 percent of stock as of May 1, according to Bloomberg data.
Sullivan, 53, succeeded Greenberg as CEO in March 2005. Two months later, then-New York Attorney General Eliot Spitzer sued AIG and Greenberg, accusing him of ordering improper transactions to hide losses and inflate reserves.
Greenberg denies any wrongdoing in the case, which is still pending. Spitzer dropped portions of the lawsuit in 2006 that included four other allegations tied to the investigation.
Meanwhile, The Wall Street Journal reported Monday that one of AIG’s most profitable units — International Lease Finance Corp., an aircraft-leasing company and Boeing’s single biggest customer — is considering seeking a split from its troubled parent.
Citing people familiar with the matter, The Journal said ILFC is concerned AIG’s financial troubles could make it harder to compete in the crowded airplane-leasing market.
Information from The Associated Press is included in this report.