AIG Chairman Golub resigns amid tensions with CEO

July 13th, 2010 | by Maria Gonzalez |

NEW YORK—Harvey Golub has resigned as chairman of American International Group Inc. amid a clash with the company’s CEO, Robert Benmosche.

Mr. Golub was succeeded by Robert S. Miller, effective immediately, New York-based AIG said Wednesday.

In his letter of resignation, Mr. Golub said: “Bob Benmosche has informed the board that he believes our working relationship as chairman and CEO to be ineffective and unsustainable. At this point, I view asking the board to choose between us would be an abdication of my responsibility to lead.

“Consequently, I’m resigning for the simple reason I believe it is easier to replace a chairman than a CEO—particularly a company in the midst of two major activities: (1) a major corporate restructuring, and (2) development of an exit plan from government control, both of which involve executing a long list of difficult tasks.”

Tensions between Messrs. Benmosche and Golub reportedly escalated after the board decided to reject a lower offer from London-based Prudential P.L.C. after its shareholders balked at the $35.5 billion price for AIA Group. Mr. Benmosche, who supported accepting the lower bid, is said to have told the board at a meeting last month that he wanted Mr. Golub to leave the company and would resign if that did not happen, according to the report. The men reportedly later resolved their differences and agreed to work together.

Both Messrs. Golub and Benmosche joined AIG’s board in August of last year.

Mr. Miller, who is chairman of MidOcean Partners, was elected to AIG’s board in June 2009. He also has served as chairman and CEO of Delphi Corp. and worked on several corporate restructurings, among other executive roles, AIG said in a statement.

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