AIG reported to dismiss senior executives from some divisions
December 4, 2015 by Sonali Basak
American International Group Inc., the insurer that’s been slashing jobs to cut costs, dismissed four senior members of its real estate business including the group’s chief executive officer, Robert Gifford, according to a person familiar with the move.
AIG Global Real Estate’s head of Americas, Donald Huffner, and Brooks Mohrman, who managed investments in Mexico, were also let go as part of a plan to cut more than 300 senior positions, said the person, who asked not to be named discussing personnel matters. The group’s general counsel, Richard D’Alessandri, was also dismissed, the person said.
AIG CEO Peter Hancock had announced plans to cut about 23 percent of the top 1,400 members of senior management as he seeks to simplify the insurer and improve returns. Activist investor Carl Icahn, who’s seeking a split up of the company, has faulted Hancock for not reaching profitability targets. AIG has also been moving jobs to lower-cost locations including Texas and the Philippines, and shedding assets.
“These are quite talented and highly paid individuals,” Hancock said on a conference call with analysts earlier this month. “We just simply need fewer cooks in the kitchen.”
Douglas Tymins, who oversees the group’s affordable-housing unit, will assume the additional role of CEO at AIG Global Real Estate, the person said. The Wall Street Journal reported the exits earlier Thursday. The group has about 200 investment professionals, the person said.
The four departing executives didn’t immediately return messages sent to their LinkedIn accounts. Jon Diat, a spokesman for AIG, declined to comment.
(Bloomberg)
