Management Critic Paulson Won’t Stand for Re-election to AIG Board
April 17, 2017 by David Pilla
NEW YORK – John Paulson, one of two activist investors elected to American International Group Inc.’s board of directors just over a year ago in a challenge to management’s strategic direction, has decided not to stand for re-election to the board.
In AIG’s proxy statement for its annual general meeting, filed with the U.S. Securities and Exchange Commission, AIG said 13 of its current 16 board members will stand for re-election at the board’s June 28 meeting. All of the members serve one-year terms.
The board will elect replacements for the three members who are not standing for re-election next year.
Ahead of its earnings conference call a year ago, AIG expanded its board from 14 to 16 seats with the nomination of two activist investors, Paulson, president of Paulson & Co., and Samuel Merksamer, a managing director of Icahn Capital LP, an entity associated with investor Carl Icahn, a vocal critic of AIG’s strategy (Best’s News Service, Feb. 12, 2016).
In addition to Paulson’s decision not to stand, members George L. Miles Jr. and Robert S. Miller are retiring from the board this year after reaching the age of 75, “which is the general director retirement age guideline under our corporate governance guidelines,” AIG said in its proxy statement.
“Following discussions with Mr. Paulson, the Nominating and Corporate Governance Committee determined not to nominate him for re-election as a director this year due to his other time commitments,” AIG said.
All of the 13 nominees standing for re-election, including Peter D. Hancock, current chief executive officer, are currently members of AIG’s board.
“As previously announced, under AIG’s transition agreement with Mr. Hancock, Mr. Hancock will continue to serve” as president and CEO and as a director until his successor as CEO “has been appointed or, if earlier, Dec. 31, 2017,” AIG said. Hancock’s resignation from the board will be effective “upon the occurrence of the first of these two events,” the company added, noting “Mr. Hancock will provide the board with management’s insight into AIG’s strategic objectives and will play an important role in our management transition plan.”
Underwriting entities of American International Group Inc. have current Best’s Financial Strength Ratings of A (Excellent).
(By David Pilla, news editor, BestWeek: David.Pilla@ambest.com)