AIG boardroom shakeup sparks delay in accounts

In a week of high-profile departures, one of the most powerful figures in the insurance industry has stepped down along with his firm’s chief financial officer in a boardroom shake-up triggered by an accounting investigation into American International Group.

Link: In-depth: Sarbanes-Oxley

President and CEO Maurice ‘Hank’ Greenberg and CFO Howard Smith, who, according to AIG, has ‘gone on leave’, have been replaced by Martin Sullivan and Steven Bensinger respectively – a move that caused the insurer to delay its 2004 accounts.

In November last year, AIG paid US authorities $126m (£67m) to settle an accounting probe, however, it faces further investigations.

AIG said its 2004 financial results would be delayed by ‘the management changes… as well as the company’s ongoing review of the accounting for certain transactions’ which was started in connection with ‘previously announced regulatory inquiries’.

AIG was due to publish its 2004 figures on Wednesday.

Related reading