American International Group has revealed that it is to form two new committees charged with ensuring that the insurance giant adheres to legal requirements and its social responsibility.
The new overseeing groups, which will be know as the Regulatory, Compliance and Legal Committee and the Public Policy and Social Responsibility Committee, have been formed in the wake of improper conduct scandals that have rocked the company to its core.
Despite being the largest insurance organization in the world, AIG’s resent problems have taken their toll, not least on customer confidence. By establishing the two new committees, which should improve internal management and accountability, the insurer hopes client concern will be eased.
The insurance titan is currently being investigated for improper accounting of reinsurance for the alleged purpose of manipulating financial results. A major casualty of the current problems has been Maurice Greenberg, who was removed from his long term position of CEO recently.
In addition, AIG’s board has reconstituted its executive committee. Martin Sullivan, AIG president and CEO, will serve as chairman of the executive committee. Also serving on the executive committee will be Donald Kanak, AIG executive vice chairman and COO; Frank Hoenemeyer, the chairman of the audit committee; Bernard Aidinoff, chairman of the nominating and corporate governance committee and Marshall Cohen, chairman of the compensation committee.
The AIG board has also named Frank Zarb interim chairman.
Company shares gained slightly on the news, increasing 1.7% to $51.90.