AIG CEO to step down

AIG chairman and chief executive Edward Liddy is to step down once the US insurance giant's board of directors finds a replacement, it was announced today.

Liddy, who serves as both chairman and CEO, was appointed by the US Federal Reserve to head the company in September, after the troubled insurer received billions of dollars in federal aid.

A statement from AIG - American International Group - said Mr Liddy has recommended to the Board that the Chairman and CEO roles be separated.

“Much work remains to be done at AIG, but much has already been accomplished,” Mr. Liddy said.

“With the financial assistance of the Federal Reserve Bank of New York and the US Department of the Treasury, we have made substantial progress in stabilizing AIG, reducing the systemic risk that led the government to rescue the company, protecting our policyholders and our businesses, and developing a plan to repay American taxpayers.

“As we have noted repeatedly, our pace of success will depend on global economic conditions and financial markets. It is likely to take several years. AIG should have a leadership team committed to a similar time horizon and prepared to carry the plan to completion,” Mr. Liddy concluded.

Liddy had come under intense scrutiny in March after it was revealed that AIG, recipient of $182bn (€130bn) of US taxpayer funds, had paid out $165m (€118m) in executives' bonuses. After an outcry, employees who received more than $100,000 (€71,000) in bonuses were asked to return half.

So far, AIG said about a third of the bonuses were returned.