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By Lilla Zuill
NEW YORK May 28 A search for a successor to
Edward Liddy, chairman and chief executive of AIG, is being led
by board member Dennis Dammerman, according to a source
familiar with developments.
The search, which is expected to take no more than a few
months, is being undertaken after Liddy, picked by federal
officials to run American International Group Inc (AIG.N) at
the time of the insurer's bailout last September, said he wants
to step down. He made the announcement last week.
Dammerman, a retired vice chairman and chief financial
officer of General Electric Co (GE.N), was named to AIG's board
last November, also picked by government officials.
He is one of several new directors appointed in recent
months. The board is expected to have more new faces soon, with
five other directors due to be elected at AIG's annual meeting
next month, nominated by trustees of the government's stake of
nearly 80 percent of AIG.
An AIG spokeswoman had no comment on Dammerman being
appointed to lead the executive search.
Liddy, who took the job for a salary of $1, has recommended
to the board that they find two candidates to succeed him,
splitting the CEO and chairman roles.
In an interview with Reuters last week, Liddy said he
expected the person picked as chairman to be someone familiar
with the workings of government, while the CEO post should go
to someone willing to commit up to five years to the job.
When Liddy was named AIG CEO last year he was the third
person to hold the job in as many months, replacing Robert
Willumstad, who succeeded Martin Sullivan in mid-June.
Liddy's eight-month reign at AIG has been marked by two
upbraidings he received from lawmakers during Congressional
hearings about the company's use of bailout funds, including
bonuses paid to executives of a controversial financial
AIG is in the midst of a massive restructuring, as it tries
to sell or spin off both domestic and international assets to
raise enough money to pay back about $85 billion borrowed from
taxpayers after large losses from derivatives written by AIG
(Reporting by Lilla Zuill; editing by Gunna Dickson and Brian