American International Group Inc., the beleaguered carrier that recently revealed $3.9 billion earnings inflation for the past five-year period, announced its board has adopted measures to improve corporate governance structures.
AIG said its board of directors has approved changes in AIG's bylaws and governance guidelines that would require the board chairman and at least two-thirds of the directors to be independent under New York Stock Exchange listing standards. (The NYSE standards can be found at www.aigcorporate.com/corpsite/PDF/indstandards2005v2.pdf.)
According to AIG spokesman Joe Norton, these bylaws will not prompt any shakeup in the present board, since the current non-executive chairman, Frank Zarb, as well as two-thirds of the board, is already considered independent. The changed bylaws are designed to put AIG's new corporate governance practices formally in writing, Mr. Norton said.
The New York-based insurance giant will have its 2005 annual meeting of shareholders Aug. 11 at its New York headquarters.
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