AIG CEO facing shareholder dissent: paper
NEW YORK (Reuters) - The chief executive of American International Group Inc (AIG.N), Martin Sullivan, is facing dissent from some large shareholders, the Wall Street Journal reported on its Web site on Sunday.
Three shareholders who effectively controlled about 4 percent sent a letter to the board two days before AIG's May 14 annual meeting, asking for a meeting to discuss "steps that can be taken to improve senior management and restore credibility," the paper said.
The investors expressed their concerns about the company's performance to AIG Chairman Robert Willumstad and director Morris Offitt who met with them, the paper reported.
Over the last two quarters, the world's largest insurer has posted record losses stemming from more than $20 billion in write-downs on the credit default swap investments held by its financial products unit, sending shares sharply lower.
The paper said the board has so far backed Sullivan, but cited sources familiar with the board as saying that the chief executive needed to turn things around fast.
Some investors are also talking about the possibility of a special meeting of shareholders if directors don't take further action, the paper said, citing an unnamed source.
AIG spokesman Chris Winans defended Sullivan.
"As a result of the ongoing strategic efforts led by Mr. Sullivan, AIG moves forward as a premier global financial services company with strong business and financial expertise in place and sound capital and operating positions to enable us to keep growing the business successfully over the long term," Winans said in an e-mailed statement.
(Editing by Anshuman Daga)
