American International Group’s annual meeting resulted in the re-election of directors. CEO Edward Liddy also said that the company has an “excellent chance” of repaying the government, reports Bloomberg.
Board members Liddy, Dennis Dammerman, George Miles, Suzanne Nora Johnson, and Morris Offit were re-elected. Liddy, who said last month he will step down as CEO as soon as a replacement takes over, has said he also plans to resign as chairman and that the two posts should be split.
AIG hired executive search firm Spencer Stuart to find the next CEO, two people familiar with the situation told Bloomberg. Thomas Neff, U.S. chairman of the recruiting firm, is involved in the search.
KB Home Chairman Stephen Bollenback, AIG’s lead independent director; Harvard University professor Martin Feldstein; and James Orr, whose reappointment was opposed by unions because of his role on the compensation committee.
“Goodbye and good riddance,” said shareholder Kenneth Steiner when the meeting was opened to questions from investors.
AIG plans to reduce its debt under a Federal Reserve credit line by $25 billion by passing down stakes in two non-U.S. life insurance units.
AIG has received a total of four bailouts, totaling $182.5 billion, after agreeing in September to turn over a majority stake in the company to the U.S. government.
“We believe there is an excellent chance that we can repay the government,” Liddy said. “The government is not prepared to make any adjustments” to the arrangement that turned over majority control to the U.S., he said. “My hope would be that as we make progress in the overall restructuring, that maybe those conversations will bear fruit.”
AIG has disclosed transactions raising about $6.7 billion. “We have determined the destinies of nine of our major businesses spanning everything from life insurance in Taiwan to global real estate, and have specific plans for each of those nine,” Liddy said. “We expect this process to advance steadily in the next six months, and may involve public offerings.”