By: Luke Jones, Published on March 9, 2017 07:18 PM, Last Update on March 13, 2017 10:51 AM
American International Group (AIG) today announced president and CEO, Peter D. Hancock will step down from his position. He has informed the board of directors that he will resign, saying a lack of shareholder support as the reason.
Hancock will stay as CEO through the transition process as the company looks for a successor. The board says it will carry out a “comprehensive search” for a new CEO.
“I believe this is the right decision to make for the company and all its stakeholders,” Hancock said in a press release. “Without wholehearted shareholder support for my continued leadership, a protracted period of uncertainty could undermine the progress we have made and damage the interests of our policyholders, employees, regulators, debtholders and shareholders.”
Peter Hancock has been at the AIG helm since September, 2014. He has overseen the company through one its most challenging periods. The company has struggled since being bailed out by the US government during the 2008 financial crisis.
AIG was the focus of calls to break into three separate entities in 2015. Activist investor Carl Icahn led the push but was ultimately given a role on the board. Hancock instead pursued a restructuring strategy through 2016. This plan has so far been unsuccessful and has been a chief reason for the CEO’s departure.
Douglas M. Steenland, AIG’s chair of the board, said in the release that Hancock’s accomplishments at AIG, “including his role in the company’s turnaround and in driving shareholder value, are immeasurable. He tackled the company’s most complex issues, including the repayment of AIG’s obligations to the U.S. Treasury in full and with a profit, and is leaving AIG as a strong, focused and profitable insurance company. The board thanks Peter for his many contributions.”
Steenland noted that as CEO, Hancock developed a two-year strategic plan announced in January 2016 and that the company will continue on that plan. “The board believes strongly that this is the right plan and remains committed to the financial targets and objectives we’ve announced. The board recognizes the value of the combined strength of AIG’s consumer and commercial franchise, and the capability of this management team.”
Hancock said that he’s “extremely proud of our organization and the steps we have taken to position the company for success long into the future. We are on course to deliver higher quality, more sustainable earnings and have dramatically reduced reserve risk. The board and I are confident in the ability of this team to continue to execute our strategic plan and deliver strong results.”