AIG looks at penalizing or ousting CEO over turnaround plan: WSJ

American International Group Inc's directors are discussing whether to penalize or oust Chief Executive Peter Hancock over a major setback in the insurance firm's turnaround plan, the Wall Street Journal reported, citing people familiar with the matter.

Fifteen directors are expected to debate on various potential actions at a board meeting in early March, the report said. (http://on.wsj.com/2lYNS53)

The goals for AIG's restructuring plan include returning $25 billion to shareholders and becoming a "leaner, more profitable and focused insurer" by trimming its property and casualty business and shedding unwanted assets.

AIG could not be immediately reached for comment.

(Reporting by Nikhil Subba in Bengaluru; Editing by Anil D'Silva)