Nationalised insurance giant American International Group replaced CFO Steven Bensinger with its comptroller, David Herzog, on the same day the firm was forced by New York State Attorney General Andrew Cuomo to cancel a raft of lavish conferences and junkets costing $80m.
Reporting to AIG chairman and CEO Edward Liddy, Herzog will lead the
company’s efforts to reorganise its capital structure and pay back the Federal
Reserve $85bn, two-year rescue loan it received in September. He is also
mandated to overhaul AIG’s expense practices, following a damning open letter to
its board from Cuomo exposing a culture of “exorbitant expenses” and ordering
the company to “recover improper bonuses and other payments and perks”.
AIG said Bensinger left “to pursue other opportunities” and added it would
not be making any severance payout.
Bensinger rose to CFO in 2005 from treasurer and comptroller, but was moved
to the role of vice chairman for financial services this May. Herzog became
comptroller when Bensinger was promoted.
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