AIG CEO threatens to quit if chairman doesn't first: Report

NEW YORK: American International Group Inc Chief Executive Robert Benmosche threatened to resign last week following a deepening rift with Chairman Harvey Golub over asset-sale plans, a media report said on Thursday.

At an AIG board meeting, Benmosche said he might resign if Golub didn't leave, The Wall Street Journal reported, citing people familiar with the matter.

"Robert Benmosche, chief executive of AIG, threatened to resign last week following a deepening rift with the government-controlled company's chairman, Harvey Golub, over asset-sale plans," the report noted.

Golub, AIG's non-executive chairman, was present at the meeting, the report said, adding that no decision was made. Tensions have mounted between the two men after AIG's recent attempt to sell its biggest foreign life insurance unit to Prudential PLC of the UK failed.

According to the publication, Benmosche, who has been holding the post since last August, has threatened to quit in the past over other issues, including federal pay curbs for AIG employees.

Benmosche had strongly advocated the sale of AIA Group, the Asian life insurance unit of AIG, even after Prudential proposed to reduce an agreed-upon $35.5 billion price tag. Virtually all of AIG's other board members voted against the revised terms.

At last Friday's meeting, Benmosche pushed for more authority to determine AIA's future. AIG is currently leaning towards an initial public offering of the unit, which is "the only alternative at the moment," a source added.

Benmosche and Golub couldn't be reached for comment, the report noted.

The report said that Golub is not expected to vacate his position soon and board members are hoping that the two men can work out their differences without one having to quit.