Maurice Greenberg, the head of American International Group Inc., New York, for nearly 40 years, has notified AIG in a letter that he will not seek reelection as chairman and will retire by week’s end.[@@]
The AIG board replaced Greenberg as chief executive officer with Martin Sullivan 2 weeks ago, and the board announced Monday that Frank Zarb, the board’s lead director, will assume the post of chairman.
Greenberg is expected to retire Wednesday or Thursday when he returns from a business trip to China and Europe, the AIG board says.
The board says it was informed of Greenberg’s decision in a letter from his attorney, David Boies, to the board’s lawyer, Richard Beattie.
AIG in February said it was subpoenaed by the U.S. Securities and Exchange Commission and New York Attorney General Eliot Spitzer’s office in an investigation of nontraditional insurance products. Investigators said the products might have been used improperly to improve the company’s financial picture.
AIG has delayed the release of its annual financial report while it investigates the possibility that it might have to change its financial reporting.