Posted on 28 Oct 2010
American International Group Inc.'s board unveiled that Chairman Robert S. "Steve" Miller would step in as the company's interim chief executive officer if current CEO Robert Benmosche has to stop working due to his illness.
Recently diagnosed with cancer Mr. Benmosche is receiving "aggressive" treatment, and in a letter to employees the 66-year-old CEO said that he feels "fine" and intends to continue running AIG, which is selling assets and restructuring to repay its taxpayer-funded bailout.
"We are committed to management continuity and ensuring that we have established appropriate, orderly succession plans.
"Bob Benmosche, President and Chief Executive Officer of AIG, had previously committed to the Board that he would remain CEO until AIG completed repayment of its taxpayer obligations, which is currently expected to be sometime in 2012. Bob feels fine, continues to work a normal schedule, and the Board continues to assume that Bob will remain CEO on this timetable.
"Given the effectiveness of Bob's leadership, his commitment to his role, and the strength of the AIG management team, the Board remains comfortable with its current succession planning timetable. In light of the news of Bob's health condition, however, the Board held a meeting today to review our succession planning process. While Bob continues to perform his job very well, and we have no reason to expect otherwise going forward, we determined on the basis of prudence the following:
"In the event that Bob would become unwilling or unable to continue to effectively serve in his current role, our Chairman, Steve Miller, would step in as interim CEO of AIG for as long as it takes to identify and select a long-term replacement for Bob.
"The Board intends to review its selection criteria for the next CEO and will continue to discuss succession planning. The choice of a long term successor to the CEO will include a fair evaluation of internal candidates as well as external candidates. The process would then be concluded when, over the next two years, it is appropriate to name Bob's eventual successor."