AIG’s (AIG) ancient former CEO Hank Greenberg is not happy with how the place is run. He shouldn’t be, but neither should any of the company’s shareholders. The stock is off 10% over the last two year against an almost 30% improvement in the S&P.
Of course, Greenberg, now well into his 80s was booted because of an accounting scandal at the firm where he was CEO from 1967 until two years ago. The Feds are still looking into the matter.
In the meantime, Greenberg controls trusts and foundations that control 13.6% of AIG’s shares. He has filed with the SEC seeking changes at the company because he "believes that there are opportunities to significantly improve [AIG’s] performance and strategic direction, as well as the value of their investment."
According to The Wall Street Journal, Greenberg "have not made any decisions regarding their future intentions.". Read that to mean that he intends to bully that AIG board through suits or a proxy fight to get the price of the shares up. This might come through selling off assets, increasing the dividend, of buying back shares.
Instead of playing shuffle board on the Queen Mary II, Greenberg is trying to get the stock price up at his old company. And, he probably will
Douglas A. McIntyre
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