It's unclear whether the new reporting structure was announced because of the investigation or if the company knew that Watson planned to step down. Argo did not immediately respond to requests for comment at the time of this publication. (Photo: iStock)
Argo Group International Holdings Ltd. announced its establishment of a new reporting structure led by newly appointed executive vice presidents. Gary Grose, Tim Carter and the third executive vice president, to be announced later this year, will report to Kevin Rehnberg, who was named interim CEO on Nov. 5 after Mark E. Watson III stepped down from the position amid an investigation by securities regulators over Argo's executive compensation practices.
The investigation comes after an activist investor, Voce Capital Management, accused Argo of misusing corporate assets, including company-owned aircraft and housing. According to Bloomberg, among Voce's allegations is that Argo failed to properly disclose the details of its corporate jet program, which Voce estimated costs millions of dollars a year to maintain and traveled dozens of times to airports near Watson's homes and holiday destinations.
The independent directors of the board continue to conduct their review of governance and compensation matters. The company is also fully cooperating with an investigation by the Securities and Exchange Commission with respect to Argo's disclosures of certain compensation matters.
Structural change
"The new structure focuses on maintaining operational excellence and providing additional senior leadership for Argo's growing, profitable Americas businesses, all of which continue to improve processes, reduce expenses and put the right people in the right roles," Rehnberg said in a statement. "These changes will also help us accelerate the overarching digital transformation of the entire organization by enabling me to focus more time on operations companywide."
He added that creating the three new executive vice president positions helps build on the company's leadership succession plan and creates strong career paths within Argo. "The EVP level creates a talent pool for filling senior executive positions in the future and promotion opportunities for business unit-level leaders," Rehnberg stated.
It's unclear whether the new reporting structure was announced because of the investigation or if the company knew that Watson planned to step down. Argo did not immediately respond to requests for comment at the time of this publication.
Meet the team
Grose currently serves as Argo Group producer management and marketing leader and head of Colony Specialty. Now in his sixth year at Argo, he will continue to lead group producer management and marketing, as well as oversee the following businesses: contract, property, environmental, inland marine and transportation.
Tim Carter joins Argo following leadership roles with AIG's commercial insurance segment as president, portfolio solutions and chief underwriting officer. He will be responsible for U.S. underwriting as well as surety, programs – risk-bearing, programs – alternative risk solutions, trident public risk solutions and Argo Construction.
The third executive vice president will oversee U.S. claims as well as the following: casualty, Argo Pro, Argo Insurance, Rockwood, cyber.
Leadership roles within each business unit have not changed. As markets shift and businesses evolve, Argo will rotate its business units among the three executive vice presidents to expose each to all parts of the U.S. business.
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