AIG CEO Peter Hancock revamped a committee of senior executives he initially formed more than a year ago in a bid to further boost efficiency and growth. The move will lead to the departure of four executives and added responsibilities for those who remain.
Hancock’s action comes as billionaire activist investor Carl Icahn continues to press for an AIG breakup as well as his potential removal. AIG spokesperson Jon Diat told Carrier Management via email, however, that “these organizational changes have been considered for nearly a year.”
The insurance giant said that the following executives will leave the company after a transitional period: David Herzog, chief financial officer; John Doyle, executive vice president and chief executive officer of Commercial Insurance; Jose Hernandez, senior vice president and chief executive officer of Asia Pacific; and Eric Martinez, executive vice president of Global Claims and Operations.
Hancock’s Operating Committee, formed after he became CEO in September 2014, has been streamlined down from 15 people to 10 and been renamed the “Executive Leadership Team.” Many of the original appointments from the Operating Committee remain in the new configuration with both existing and new responsibilities.
Hancock explained the revamp in a memo to AIG employees, noting a desire to build on progress made so far on narrowing focus, boosting efficiency, growing through innovation and returning excess capital to shareholders.
“We are moving forward with a continued sense of urgency,” Hancock wrote. “I have streamlined my senior leadership structure in a manner that will accelerate our decision-making and ensure that we have strong end-to-end accountability within the customer segments.”
The revamped team is “a dynamic, highly skilled group that is well-positioned to lead our company’s transformation as we continue to execute on our strategic priorities and simplify AIG,” Hancock said.
At the same time, Hancock referred to Herzog, Doyle, Hernandez and Martinez as “departing senior leaders” who gave “years of distinguished service.” He explained that the company “will take the appropriate time to honor and celebrate their many contributions to AIG.”
AIG said that Hancock’s revised Executive Leadership Team will include:
Herzog will continue as chief financial officer through the filing of AIG’s 2015 Form 10-K, according to the company. Sankaran will continue as chief risk officer until he becomes chief financial officer.