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AIG’s Hancock Faces Wild Ride Says The Edge as Icahn Cites Leadership Void

Written by admin | Oct 29, 2015 12:22:56 PM

By Senior Reports Sonali Basak and Beth Jinks, Bloomberg: Billionaire’s push comes as CEO misses return-on-equity goal. Peter Hancock may have met his hardest challenge yet. Since Hancock took over as chief executive officer of American International Group Inc. last year, Warren Buffett’s Berkshire Hathaway Inc.’s new commercial insurer raided AIG for talent. The integration of two AIG Japan units stalled. And Hancock coped with what he saw as an inadequate focus on technology and data, recruiting new staff.

Hancock is “going to have to take a lot of orders and possibly get someone on the board to dictate how the spinoff plays out,” Jonathan Morgan, a deals analyst at The Edge, a research firm, said by phone. “He’s in for a bit of a wild ride.”

You have shown no sign of urgency and have chosen a ‘wait and see for years’ strategy, void of decisive leadership,” Icahn wrote in a letter published on his website. “Amazingly, you have turned the quest for a 10 percent ROE into a half-decade journey.” Icahn said that dividing the company could…

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