The new CEO of American International Group, Robert Benmosche, may face strong words from board members concerned that his tough talk has gone too far. Certain members of AIG’s board have been taken aback by his comments at employee meetings, say people familiar with the matter in a Wall Street Journal report. Benmosche said New York Attorney General Andrew Cuomo “doesn’t deserve to be in government” and that Benmosche would leave dealing with “all those crazies down in Washington” to the company’s chairman. Some board members are unfazed by Benmosche’s style, said the report. Many employees, along with people outside the company, are refreshed by Benmosche’s brashness, and his articulation of the view that executives — not regulators — should run businesses. However, AIG has tens of thousands of employees in businesses around the world, and good feelings aren’t universal, it claimed. That may be particularly true for employees in foreign units who hoped to earn back some personal wealth via planned initial public offerings of stock in certain subsidiaries. Those plans have been put on review. Some AIG board members intend to discuss how to better manage Benmosche when independent directors convene privately during a board retreat in mid-September, according to sources. They may tell him that a change in tone is essential. The board “could go so far as to say, ‘It’s a condition of your continued employment,’” one said. At the least, there could be “a little adult counseling” from Chairman Harvey Golub, another suggested. Golub along with Benmosche assumed his post Aug. 10, declined to comment. Benmosche, meanwhile, seems prepared for any rebuke. “It would be appropriate if they said it,” said Benmosche, 65. “But the board doesn’t have to tell me that. I’ve already told it to myself.” He said he and Golub have discussed the flap over the Cuomo remarks. Golub said earlier this week that the comments weren’t made “in a thoughtful way.” Another issue that has caught employees’ attention is Benmosche’s frequent use of four-letter curses during meetings. He concedes he “sometimes” curses and said it is “inappropriate.”
Report Hints that AIG Board May Tone Down Benmosche
Some AIG board members intend to discuss how to better manage Benmosche when independent directors convene privately during a board retreat in mid-September.
September 3, 2009