Need to Know: October 2008
October 1, 2008 by Ira Millstein
Boards of directors continue to feel the heat over the meltdown in financial markets, with many critics placing the blame, fairly or not, on the backs of boards. Amid all the uncertainty, one thing is certain: Never before have such significant challenges been placed before management and board directors.
October 1, 2008 by Ira Millstein
Boards of directors continue to feel the heat over the meltdown in financial markets, with many critics placing the blame, fairly or not, on the backs of boards. Amid all the uncertainty, one thing is certain: Never before have such significant challenges been placed before management and board directors.
Greenberg Seeking AIG Assets
October 1, 2008 by Joseph McCafferty
Maurice “Hank” Greenberg, former CEO and AIG critic, has asked the company’s CEO for the opportunity to bid on any assets the insurer plans to sell.
October 1, 2008 by Joseph McCafferty
Maurice “Hank” Greenberg, former CEO and AIG critic, has asked the company’s CEO for the opportunity to bid on any assets the insurer plans to sell.
Subpoenas for Fannie and Freddie
September 30, 2008 by Joseph McCafferty
Mortgage financers Fannie Mae and Freddie Mac revealed yesterday that they have both received subpoenas from the U.S. Attorney's office for the Southern District of New York requesting accounting and governance documents from January 1, 2007 to the present.
September 30, 2008 by Joseph McCafferty
Mortgage financers Fannie Mae and Freddie Mac revealed yesterday that they have both received subpoenas from the U.S. Attorney's office for the Southern District of New York requesting accounting and governance documents from January 1, 2007 to the present.
Economic Outlook: That Other $700B
September 29, 2008 by Joseph McCafferty
The US trade deficit has grown to $US700 billion, which of course is money not spent on US goods and services. This has killed off well paying jobs, has slowed the economy and created unemployment. If America doesn’t fix the banks, it won’t get the economy going. Properly functioning credit markets and solvent banks are needed.
September 29, 2008 by Joseph McCafferty
The US trade deficit has grown to $US700 billion, which of course is money not spent on US goods and services. This has killed off well paying jobs, has slowed the economy and created unemployment. If America doesn’t fix the banks, it won’t get the economy going. Properly functioning credit markets and solvent banks are needed.
Executive Pay Controls Sought for WaMu
September 24, 2008 by Joseph McCafferty
In lieu of the U.S. Treasury’s plan to fund a $700 billion bailout plan, Democrats focus on including controls on executive pay that take advantage of the taxpayers’ aid.
September 24, 2008 by Joseph McCafferty
In lieu of the U.S. Treasury’s plan to fund a $700 billion bailout plan, Democrats focus on including controls on executive pay that take advantage of the taxpayers’ aid.
Willumstad Declines Severance
September 23, 2008 by Joseph McCafferty
Former AIG CEO Robert Willumstad’s decision to reject a $22 million severance pay package is not indicative of a trend of failing large companies.
September 23, 2008 by Joseph McCafferty
Former AIG CEO Robert Willumstad’s decision to reject a $22 million severance pay package is not indicative of a trend of failing large companies.
Frank Wants to Tie Bailout to Guidelines for Executive Compensation
September 22, 2008 by Joseph McCafferty
In the wake of sweeping structural changes across Wall Street, House Financial Services Committee chairman Barney Frank wants the U.S. government to take a stand against exorbitant executive compensation packages.
September 22, 2008 by Joseph McCafferty
In the wake of sweeping structural changes across Wall Street, House Financial Services Committee chairman Barney Frank wants the U.S. government to take a stand against exorbitant executive compensation packages.
Minow Points Finger at Boards
September 19, 2008 by Joseph McCafferty
Nell Minow says that the people most responsible for the meltdowns of financial institutions are the board of directors. Their failure to act as fiduciaries for shareholders in managing risk is why many major financial institutions have ended in disaster.
September 19, 2008 by Joseph McCafferty
Nell Minow says that the people most responsible for the meltdowns of financial institutions are the board of directors. Their failure to act as fiduciaries for shareholders in managing risk is why many major financial institutions have ended in disaster.
Greenberg Puts Blame on AIG Board
September 19, 2008 by Joseph McCafferty
AIG’s largest shareholder, Maurice “Hank” Greenberg, lost approximately $17.9 billion. Despite his extensive losses, Greenberg believes that AIG’s current board of directors is to blame for the insurance giant’s demise.
September 19, 2008 by Joseph McCafferty
AIG’s largest shareholder, Maurice “Hank” Greenberg, lost approximately $17.9 billion. Despite his extensive losses, Greenberg believes that AIG’s current board of directors is to blame for the insurance giant’s demise.
Liddy Replaces Willumstad at AIG
September 17, 2008 by Joseph McCafferty
After three months at the helm of AIG, Robert Willumstad is losing his job as CEO to Edward Liddy, a former Allstate CEO.
September 17, 2008 by Joseph McCafferty
After three months at the helm of AIG, Robert Willumstad is losing his job as CEO to Edward Liddy, a former Allstate CEO.
AIG Says D&O Coverage Secure
September 17, 2008 by Joseph McCafferty
AIG sent a statement laying out the details of its deal with the Federal Reserve, the replacement of CEO Robert Willumstad, and the status of its subsidiaries.
September 17, 2008 by Joseph McCafferty
AIG sent a statement laying out the details of its deal with the Federal Reserve, the replacement of CEO Robert Willumstad, and the status of its subsidiaries.
AIG Credit Ratings Downgraded
September 16, 2008 by Joseph McCafferty
Facing a downgrade of its credit rating that could doom the company, wavering insurance services giant AIG is in a desperate hunt for life-saving capital as its share price spirals downward.
September 16, 2008 by Joseph McCafferty
Facing a downgrade of its credit rating that could doom the company, wavering insurance services giant AIG is in a desperate hunt for life-saving capital as its share price spirals downward.
Deposed AIG CEO Gets $47M
July 2, 2008 by Joseph McCafferty
American International Group paid a $47 million severance package to former CEO Martin J. Sullivan.
July 2, 2008 by Joseph McCafferty
American International Group paid a $47 million severance package to former CEO Martin J. Sullivan.
CEOs: Be Ready on Day One
June 24, 2008 by Joseph McCafferty
Sufficient, thoughtful, and comprehensive succession plans are necessary for CEO appointments. With the "honeymoon" after a new CEO steps in shortening, planning is more critical than ever. Shareholders and investors are calling for more timely results and greater transparency. Promises aren't worth much without results.
June 24, 2008 by Joseph McCafferty
Sufficient, thoughtful, and comprehensive succession plans are necessary for CEO appointments. With the "honeymoon" after a new CEO steps in shortening, planning is more critical than ever. Shareholders and investors are calling for more timely results and greater transparency. Promises aren't worth much without results.
Here We Go Again
June 18, 2008 by Joseph McCafferty
A hefty severance payout for ousted AIG CEO Martin Sullivan promises to put executive pay back in the spotlight and the pressure back on compensation committees.
June 18, 2008 by Joseph McCafferty
A hefty severance payout for ousted AIG CEO Martin Sullivan promises to put executive pay back in the spotlight and the pressure back on compensation committees.
AIG Board Names Willumstad CEO
June 16, 2008 by Joseph McCafferty
Robert Willumstad replaced Martin Sullivan as American International Group’s CEO.
June 16, 2008 by Joseph McCafferty
Robert Willumstad replaced Martin Sullivan as American International Group’s CEO.
A ‘Chewable’ Poison Pill
June 1, 2008 by Gretchen Michals
Harvard Professor Lucian Bebchuk is on a quest to modify the corporate takeover defense mechanism known as the poison pill. And boards are taking notice.
June 1, 2008 by Gretchen Michals
Harvard Professor Lucian Bebchuk is on a quest to modify the corporate takeover defense mechanism known as the poison pill. And boards are taking notice.
Global Companies, Global Liabilities
June 1, 2008 by Aaron Bernstein
While some litigation trends in the United States are troubling for business leaders and directors, what is happening in many countries around the world can be downright scary. As the pace of globalization intensifies, board members and corporate officers open themselves up to personal liability in far-off jurisdictions. We sat down with Suzan B. Friedberg, assistant vice president, foreign general claims at American International Underwriters, and Steve Whelan, executive vice president at AIG Executive Liability, to delve into some of the trends taking shape in Europe, Asia, and South America. They shared some good advice on what directors can do to manage their global liability exposure.
June 1, 2008 by Aaron Bernstein
While some litigation trends in the United States are troubling for business leaders and directors, what is happening in many countries around the world can be downright scary. As the pace of globalization intensifies, board members and corporate officers open themselves up to personal liability in far-off jurisdictions. We sat down with Suzan B. Friedberg, assistant vice president, foreign general claims at American International Underwriters, and Steve Whelan, executive vice president at AIG Executive Liability, to delve into some of the trends taking shape in Europe, Asia, and South America. They shared some good advice on what directors can do to manage their global liability exposure.
Former AIG CEO May Face SEC Charges
May 21, 2008 by Joseph McCafferty
Former CEO of AIG, Maurice R. “Hank” Greenberg, may face civil charges from the SEC regarding his alleged role in improperly enhancing the insurer’s financials via fraudulent charges with General Re Corp.
May 21, 2008 by Joseph McCafferty
Former CEO of AIG, Maurice R. “Hank” Greenberg, may face civil charges from the SEC regarding his alleged role in improperly enhancing the insurer’s financials via fraudulent charges with General Re Corp.
Greenberg Says AIG ‘in Crisis’
May 13, 2008 by Joseph McCafferty
In a letter issued yesterday to the board of directors of AIG, Maurice R. "Hank" Greenberg wrote as its former chief executive but more importantly as its largest single shareholder. "AIG is in crisis, Greenberg wrote, urging the board to postpone its annual meeting.
May 13, 2008 by Joseph McCafferty
In a letter issued yesterday to the board of directors of AIG, Maurice R. "Hank" Greenberg wrote as its former chief executive but more importantly as its largest single shareholder. "AIG is in crisis, Greenberg wrote, urging the board to postpone its annual meeting.