Robert Benmosche has been CEO of American International Group (NYSE: AIG) for less than a month, but he's already established a reputation as an arrogant jerk -- which is exactly not what AIG needs at this particular moment in history.Benmosche drew some sharp criticism for his comment that New York Attorney General Andrew Cuomo "doesn't deserve to be in government" and his comment that he will deal with "all those crazies down in Washington."
Those are pretty ambitious comments given that he and every single AIG employee around the globe literally owe their jobs to an unprecedented episode of taxpayer largesse -- brought to you by, at the expense of much well-deserved populist resentment, those "crazies down in Washington."
There are reports that Benmosche received a stern rebuke from his board of directors -- and he even told The Wall Street Journal that ". . . the board doesn't have to tell me that. I've already told it to myself." He admits that his comments were "too aggressive" but says he was trying to show support for employees and voice his willingness to defend them.
But I'm not so sure. The AIG situation is delicate on a multitude of levels -- the company's massive financial problems are exacerbated by political concerns and its role as a majority-owned subsidiary of the United States government.
If he can't serve as CEO for a month without saying a whole slew of stupid, ill-advised things, don't you have to reconsider whether he's the right guy for the job?
But I'm not so sure. The AIG situation is delicate on a multitude of levels -- the company's massive financial problems are exacerbated by political concerns and its role as a majority-owned subsidiary of the United States government.
If he can't serve as CEO for a month without saying a whole slew of stupid, ill-advised things, don't you have to reconsider whether he's the right guy for the job?
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
9-03-2009 @ 10:08AM
nickerson said...
When I read this report you could change the name to Obama and it would all fit. Here we got a jerk in the Whitehouse who praises the Arabs on their holiday and for Christians its a slap in the face, for the folks who died in 9/11 his left wing groups want to go after folks who think Obamas health program sucks. Now the dumb ass is going on TV trying to brain wash the kids, what a sheep in wolfs clothing this guy is. Anyone who doesn't agree with the thug he wants his SOROS groups to slash and burn.
9-03-2009 @ 7:43PM
Sage Investor said...
As a very large share holder of AIG stock, I have three comments:
1. The last thing we need is an egocentric, arrogant CEO with not enough intelligence to understand he is in a fish bowl.
2. The problem with "insurance industry" CEO's is they set around talking to themselves, about themselves, reinforcing their own self-proclaimed importance.
3. Benmosche's mission is to earn back shareholder value. If he is already tripping over his inflated EGO, the Board needs to cut their loss and fire him. They can't lose more than what they already have. Don't be intimidated by this guy, he isn't any thing that special.
9-16-2009 @ 7:26PM
Allen said...
In hiring Benmosche, AIG has truly gotten to the dregs - yet another washed up incompetent former CEO who has left chaos in his wake. Mr. Benmosche clearly forgets that AIG is a public welfare case whose very continued existence is due to a misguided gift of taxpayer dollars. AIG should have been allowed to collapse, as the true economic impact would have been relatively minor in comparison to the $180 billion in taxpayer money they were given.
Benmosche, Blankfein (of Goldman Sachs) and others of their ilk seem to have forgotten that the economic crisis was caused by the gross incompetence of employees of AIG, Goldman, Merril Lynch, Lehman Brothers, Bank of America, CitiCorp, Countrywide, et al.
It will at least be nice to see Joe Cassano spend the rest of his life in a federal prison.