AIG asked CEO Hancock to resign to avoid battle with Icahn: WSJ

Features Reuters

FILE PHOTO - AIG CEO Peter Hancock speaks during the White House summit on cybersecurity and consumer protection in Palo Alto, California on February 13, 2015. REUTERS/Robert Galbraith/File Photo (Copyright Reuters 2017)

American International Group Inc's decision to remove Peter Hancock as its chief executive was to avoid a proxy battle with billionaire activist investor Carl Icahn, the Wall Street Journal reported, citing people familiar with the matter.

Continue Reading Below

AIG said last week that Hancock would step down, a decision he made after the insurer's poor financial performance frustrated shareholders and its board of directors.

Hancock agreed to resign��after several directors met with him to express concerns about his ability to continue improving AIG's results, while several also feared a potential fight with Icahn, the Journal reported. (

Icahn, AIG's fourth-largest investor, cheered Hancock's departure when it was announced: "We fully support the actions taken today by the board of AIG," he had tweeted.

A decision "to stand by (Hancock) would carry the threat if not the reality of a battle with Carl," a person familiar with the matter told the Journal.

When Icahn first began acquiring his stake in 2015, he advocated splitting up AIG into three parts. The insurer instead embarked on a two-year turnaround plan developed by Hancock, which the board is still committed to.

Continue Reading Below

Many longtime AIG executives who would have been obvious internal candidates for CEO have left since Hancock took the helm in 2014.

Analysts have floated names of several external possibilities since AIG stunned Wall Street with a surprisingly wide fourth-quarter loss on Feb. 14.

Hancock, 58, will remain as CEO until a successor is named.

(Reporting by Nikhil Subba in Bengaluru; Editing by Savio D'Souza)