AIG Gets New Restructuring Officers

In a new move, the massive insurance company American International Group, Inc (AIG) has named new officers to oversee the corporate reconstructing in the wake of the company’s economic failure. The officers will play a decisive role in AIG’s reorganization.

The company has hired Paula Rosput Reynolds, the former Chairman, President, and CEO of Safeco Corp., to the position of Vice Chairman and Chief Reconstructing Officer. Not only will Reynolds be responsible for divestiture of assets but will also be AIG’s primary liaison with the Federal Reserve. Reynolds reports directly to Edward M. Liddy, AIG Chairman and CEO.

The other officer, AIG’s former Senior Vice President and Chief Administrative Officer, Richard H. Booth, will assume the role of Vice Chairman of Transition Planning, while retaining his position Chief Administration Officer. Booth’s duties will include measures to get AIG running according to new operational guidelines, oversight of those businesses being separated and sold by AIG, as well as restructuring of the corporate center. He will also maintain many of his former duties. Like Reynolds, Booth reports to Edward Liddy.

Regarding Reynolds, Liddy said, “Paula brings to AIG deep experience, not only as an insurance industry leader, but also as someone who has successfully realigned organizations to meet new challenges.”

Additionally, Libby commented on Richard Booth’s professional experience and short time of service with AIG. “In his brief tenure as AIG’s Chief Administrative Officer, Dick has made tremendous progress in improving efficiency and reducing costs.”

Speaking of Reynolds and Booth, Edward Liddy had this to say, “Both of these executives will serve us well as we restore AIG as a competitive enterprise that contributes to the economy and returns value to taxpayers and shareholders.”

As the full extent of the ongoing US financial crisis continues to resonate through big businesses and the banking industry, having the right people on board to steer a safe course through the store may save AIG from destruction.