AIG chief threatening to step down (and, Our Comments on Transparency)

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AIG chief threatening to step down (and, Our Comments on Transparency)

No World Borders editorial comment: We should remember what got us to the point of having Wall Street executives being micromanged – a lack of financial transparency required the ARRA and the TARP.  And when the government ended up with the majority ownership in AIG it became the shareholder to which the board and CEO are accountable.   That means that even an outspoken, opinionated CEO like Mr. Benmosche is accountable to the American people.   Granted, financial incentives to top talent must be considered.

However, the Fed is having to do more cleanup: it will be buying AIG Mortgage Backed Securities (MBS).  See related Seeking Alpha post here.

We submit for your review a link to three past No World Borders blog posts on the topic of transparency and approaches to improving it.

AIG Chief Executive Robert Benmosche
AIG Chief Executive Robert Benmosche

From Market Talk’s blog: AIG chief Robert Benmosche threatening to step down only three months after taking the job shouldn’t come as a surprise considering his personality and all the restrictions hindering his ability to lead the government-controlled insurer.

The executive is chafing under constraints imposed by AIG’s government overseers, particularly a recent compensation review by the Obama administration’s pay czar, Kenneth Feinberg, according to the people. AIG, 80% government owned since a rescue last year, is one of the companies under Mr. Feinberg’s purview.

Last week, Mr. Benmosche and other AIG board members met with Mr. Feinberg in New York. During the three-hour meeting, board members discussed difficulties of complying with pay policies and retaining talent at the company. Mr. Benmosche’s frustrations “hit a crescendo,” said a person familiar with the matter. “Bob feels he is in an impossible situation,” the person added.

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By | 2017-05-04T04:07:04+00:00 November 11th, 2009|change management, House Financial Services Committee, MBS, TARP|0 Comments

About the Author:

Michael is Managing Partner & CEO of No World Borders, a leading health care management and IT consulting firm. He leads a team that provides Cybersecurity best practices for healthcare clients, ICD-10 Consulting, Meaningful Use of Electronic Health Records. He advises legal teams as an expert witness in HIPAA Privacy and Security, medical coding and billing and usual and customary cost of care, the Affordable Care Act and benefits enrollment, white collar crime, False Claims Act, Anti-Kickback, Stark Law, Insurance Fraud, payor-provider disputes, and consults to venture capital and private equity firms on mHealth, Cloud Computing in Healthcare, and Software as a Service. He advises self-insured employers on cost of care and regulations. Arrigo was recently retained by the U.S. Department of Justice (DOJ) regarding a significant false claims act investigation. He has provided opinions on over $1 billion in health care claims and due diligence on over $4 billion in healthcare mergers and acquisitions. Education: UC Irvine – Economics and Computer Science, University of Southern California – Business, Stanford Medical School – Biomedical Informatics, Harvard Law School – Bioethics.

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