Bid to Oust AIG chairman Greenberg Fails

American International Group Inc.’s board approved new directors at the company’s annual meeting and rejected several shareholder proposals to wrest control from Chairman and Chief Executive Maurice R. Greenberg. “Our record speaks for itself,” Greenberg said about the company he has managed for more than 30 years. AIG’s market capitalization hit a record of $189 billion, up 13/% from $167.5 billion at the end of 1999 before sinking to $181.3 billion. The company hasn’t had an unprofitable year since 1991 and only once, in 1996, trailed the Standard & Poor’s 500. As expected the board approved 18 directors previously nominated by the board. Many of the nominees were AIG executives with close ties to Greenberg. Several investor groups criticized the lack of any independent directors and proposed changes to the nominating process and board configuration. Those proposals, which were opposed by management, were defeated. The board also approved a 3-for-2 stock split and a quarterly cash dividend on the new shares of 3.7 cents a share, representing an 11% increase in the cash dividend. AIG shares fell $4.56 to close at $118.13 on the NYSE.

(Bloomberg News)