NU Online News Service, Oct. 28, 12:00 p.m. EDT
Steve Miller, currently chairman of American International Group, has been selected by the company's board to be interim president and chief executive officer if current CEO Robert Benmosche is forced to step down because of illness.
AIG said earlier this week that Mr. Benmosche, 66, had begun an "aggressive round of chemotherapy" and that the company was preparing for alternatives if he had to limit his work.
Mr. Miller became chairman in July when Harvey Golub stepped down after a contentious relationship with Mr. Benmosche.
Mr. Miller oversaw the bankruptcy of auto-parts supplier Delphi Corp. and helped Chrysler Corp. return to profitability after taking government loans in 1980. He has been CEO at Waste Management Inc. and Bethlehem Steel Corp.
This comes as AIG, with support from the Obama administration, announced a plan last month to regain independence and repay the current $123.3 billion it owes the government.
The $123.3 billion number comes from a report issued Tuesday by the Special Inspector General of the Troubled Asset Relief Program.
The report said that at one point, AIG owed the government $191.4 billion. The rescue of AIG, through control of 79.9 percent of its stock by the government, began Sept. 18, 2008.
The plan contemplates repaying investors by selling stock to private investors, hopefully as early as the first quarter of 2011.
Mr. Miller, 68, will step in as interim CEO "in the event that Bob would become unwilling or unable to continue to effectively serve in his current role," the AIG board said in a statement late Wednesday.
He would serve as interim CEO of AIG "for as long as it takes to identify and select a long-term replacement for Bob," the board said.
The board also said that it intends to review its selection criteria for the next CEO and will continue to discuss succession planning.
"The choice of a long term successor to the CEO will include a fair evaluation of internal candidates as well as external candidates," the statement said.
The process "would then be concluded when, over the next two years, it is appropriate to name Bob's eventual successor," the statement added.
The statement said Mr. Benmosche had previously committed to remain CEO until AIG completed repayment of its taxpayer obligations, which is currently expected to be sometime in 2012.
"Bob feels fine, continues to work a normal schedule, and the board continues to assume that Bob will remain CEO on this timetable," the statement said.
"Given the effectiveness of Bob's leadership, his commitment to his role, and the strength of the AIG management team, the board remains comfortable with its current succession planning timetable," the statement said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.