Ex-AIG chief votes against board re-election

By Lilla Zuill

NEW YORK (Reuters) - Maurice "Hank" Greenberg, the former head of American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz), said in an interview on Wednesday he voted against the reelection of the company's board because directors have not made sure management met expectations.

"I represent the largest shareholders, and the shareholders own the company, not the board," said Greenberg, 83, in an interview with Reuters at his Park Avenue office.

Greenberg, through companies that he controls and a personal stake, holds about 12 percent of outstanding AIG shares.

"The performance is very, very poor," he added. "We voted against the board because (it) has a responsibility to make sure management meets their responsibility, which is returns to shareholders, and that has not been done."

An AIG spokesman said each director had received a majority of shareholder votes.

Earlier on Wednesday, at AIG's annual meeting, Chairman Robert Willumstad said the giant global insurer's directors stood behind management, including Chief Executive Martin Sullivan, fending off concerns raised by investors frustrated by two quarters of record losses.

Sullivan, who replaced Greenberg as chief executive about three years ago, told investors he realized there was frustration over record losses over the past two quarters, but pledged to turn things around.

Asked in the interview if Sullivan should be replaced, Greenberg said the results spoke for themselves.  Continued...