AIG Update: Likely Board Shakeup Delaying Proxy Release

The chess board holding American International Group’s 11-member board of directors may be rearranged, reports the Wall Street Journal, with the end result being a delay in the company’s annual meeting and the release of its annual proxy statement.

The Journal reports that the insurer’s aim is to expand and reshuffle AIG’s 11-member board, which has remained largely in place since the government took its 80% stake, pumping as much as $173.3 billion in aid into the company. The AIG board is accountable mostly to its trustees, but also to the other shareholders owning a remaining stake that is slightly more than 20%. To date, the government has appointed three trustees.

In earlier news, AIG confirmed that three of its board members were not expected to stand for re-election to AIG’s board. Through a spokesman, the three trustees declined to comment about the delay in filing AIG's proxy, reported the Journal.

"We are in ongoing discussions regarding several issues and as a result have not yet filed our proxy statement," AIG said in a statement. "We intend to reschedule our annual meeting and will announce the new date in due course."

The Journal says that the delay in the filing of the proxy is expected to last only a few more days, citing a person familiar with the matter. AIG's annual meeting previously was scheduled for May 13.