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Treasury to Appoint Two New Board Members to AIG

Source: WSJ

Posted on 01 Apr 2010

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The Treasury Department has selected two individuals to be appointed directors of American International Group Inc., according to people familiar with the matter.

The picks are Don Layton, who retired as chief executive of E*Trade Financial Corp. late last year, and Ron Rittenmeyer, a former CEO of Electronic Data Systems Corp., the people said. An announcement is expected soon.

Treasury gained a right to elect directors to AIG's board after the government-controlled insurer last year missed four quarterly dividends on preferred shares it issued to Treasury under the Troubled Asset Relief Program. Treasury recently held roughly $47 billion of the preferred shares.

"If selected, I would do it," Mr. Rittenmeyer said Thursday. "I believe in the company and it's a great company," he added. "I can do it some good."

Though the expected directors are Treasury's picks, AIG board members interviewed them and other potential candidates, according to one person familiar with the situation.

A majority of the directors on AIG's 10-member board were nominated and voted in during 2009 by trustees who oversee the government's nearly 80% stake in AIG and other shareholders of the company. The two additional new directors can be appointed by Treasury without a shareholder vote.