While AIG has taken a beating the past couple of weeks in the news media following questions about executive pay and its reserves, there has been one far more positive story–the fact that the company finally buried the hatchet with its former boss, Maurice Greenberg. The deal sets the stage for a long-rumored, triumphant return by Hank to his former domain.
"I look forward to assisting AIG in trying to preserve and restore as much value as possible for all of AIG's stakeholders," he said in a statement, without any elaboration.
I doubt we'll see Mr. Greenberg running AIG's day-to-day operations ever again–although you never know. However, given the fact that Hank–despite a tarnished reputation–remains the best-known and most potent icon in the commercial insurance industry, the gravitas and institutional knowledge he would bring to the table can't be dismissed out of hand.
Whether Mr. G could help AIG smooth its bumpy road to recovery remains to be seen. But the possibility is certainly intriguing, especially with top officials at the firm grumbling about caps imposed by Uncle Sam on their compensation.
It must be enticing to Mr. Greenberg to consider playing a prominent role in restoring his creation to its former glory, while resurrecting his own stature in the process.
In terms of the settlement with AIG, there will be no further litigation between the company and Mr. Greenberg or his business entities–including Starr International Company and C.V. Starr & Company. (In case you were wondering, the deal also ends any legal battles with former CFO Howard I. Smith.)
The biggest part of the deal involves an agreement to arbitrate Mr. Greenberg's claims for reimbursement of "reasonable" legal fees and expenses. This will no doubt prove costly, although under the agreement AIG will pay no more than $150 million.
Still, that would be an amazing sum of money to pay a bunch of paper pushers and rabble rousers, and it shows that the only winners in this ugly brawl will be the attorneys involved.
Other issues of far less monetary but far more emotional value were also settled. For example, the deal calls for AIG to return property claimed by Mr. Greenberg–including pictures of him with company founder Cornelius Vander Starr, as well as with Chinese leaders in AIG's Shanghai building. He will also regain possession of a Persian rug.
But the most intriguing section of the settlement allows Mr. Greenberg to access archival materials in AIG's possession to be used in the writing of his memoirs! You can bet the title will be different than the last book about him penned by a former employee–"Fallen Giant."
The only problem is that the ending of "The Hank Greenberg Story" has yet to be lived, let alone written, especially if he attempts what would definitely be the biggest comeback in insurance history!
What do you folks think?
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