Six government-picked directors will be added to American International Group’s board at the firm’s annual meeting Tuesday, where the government will be the majority shareholder. The Wall Street Journal pointed out today that the government will probably retain this role for at least a few more years.
Currently, the amount of government aid AIG has received totals at $173 billion, which is nearly 80 percent of the company. The government has been closely monitoring the financial firm’s repayment process, which Chairman and CEO Edward Liddy has estimated could take three to five years, or longer if the economy worsens. On Thursday the firm announced a deal to give the Federal Reserve Bank of New York stakes in two of AIG’s foreign life-insurance units valued at $25 billion.
Three trustees who oversee the government’s involvement in AIG will be at Tuesday’s meeting, and their six handpicked director candidates will be elected to the 11-member board, giving them a majority. The new board must also pick an independent chairman and find a new CEO to replace Liddy, who has made it public that he wants to leave.