Harvey Golub says he is stepping down as chairman of American International Group Inc. so that Robert Benmosche will continue to be the company’s chief executive officer.
Golub, who became chairman of AIG, New York (NYSE:AIG), in August 2009, has written in a letter to George Miles, chairman of the AIG governance committee, that he is resigning from his position as an AIG director as well as the company’s chairman.
Benmosche, a former chairman of MetLife Inc., New York (NYSE:MET), who has been the AIG CEO since August 2009, “has informed the board that he believes our working relationship as chairman and CEO to be ineffective and unsustainable,” Golub writes in the letter, which as published by AIG in a press release distributed through Business Wire.
“At this point, I view asking the board to choose between us would be an abdication of my responsibility to lead,” Golub says. “Consequently, I’m resigning for the simple reason I believe it is easier to replace a chairman than a CEO – particularly a company in the midst of two major activities: (1) a major corporate restructuring, and (2) development of an exit plan from government control, both of which involve executing a long list of difficult tasks.”
Fellow directors have expressed their desire for Golub to continue to be chairman, Golub says.