Analyst Sees AIG CEO Hancock Surviving Icahn Ouster Bid

By | December 2, 2015

  • December 3, 2015 at 8:48 am
    Icahn Supporter says:
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    Hancock should be fired, he has done nothing but continue tearing down a once great company. His ignorant statement of “Don’t plan on making AIG your lifetime career” just shows what a fool he is. “We will train you and give you the skill sto become successful” elsewhere….

    He has forced out the large portions of the skilled workforce as he thinks this business can be handled by back room processors, and whn you take a Wall Street crony who was a venture capitalist for 10 years and make him your Chief Underwriting Officer….

    The guy shold go back to Wall Street, oh thats righth he can’t because no one would have them there either.

  • December 4, 2015 at 9:24 am
    Skeptical Veteran says:
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    From my perspective (as a recently-laid off AIG veteran), Peter Hancock is a completely ineffective and incompetent CEO.

    His strategy to encourage growth is as follows:

    1) 3-5% annual expense reductions from years 2015-2017.
    2) Opening up cost-centers (“campuses”) in Asia and the Pacific Islands.
    3) Laying-off US staff and shutting down as many cost-centers located in the US as possible.
    4) Informing US staff (in a recent Town Hall) that such staff should not expect to make their careers at AIG.
    5) Coupled with selling off landmark domestic and international properties, selling off unprofitable/lower-performing business units to focus on core competencies.

    The corresponding effects of that strategy has been as follows:

    1) 3-5% expense reductions have severely impacted the ability of US-based [emphasis] employees to obtain required equipment (i.e. laptops), software, and updates to worn-out office furniture. Readers should also note that new overseas “campuses” are stocked with the latest in both technology and office decor. Needless to say, it becomes clear where the investment is going…

    2) Opening up overseas campuses has allowed AIG to achieve a 40-60% cost reduction, as overseas employees cost a mere 40-60% of what US employees do. Additionally, AIG is able to work those employees anywhere from 14-16 hours each day (due to more lax labor laws in those international regions). To accuse AIG of Corporate Imperialism would be a dramatic understatement.

    3) The on-going layoffs of US staff have been unannounced, and no effort has been made to secure other intra-company positions for that staff. This has led to discouragement and disgust expressed by US staff. Needless to say, outside of the executive ranks (which will be undergoing a ~23% reduction in size, or ~300 positions), US staff is absolutely livid with how AIG Corporate has handled all of the “adverse job actions.”

    4) The on-going job actions (and Mr. Hancock’s discouraging “no AIG career” announcement) has led to significant attrition of fed-up US employees to other firms. Unlike AIG, those departed employees find hope of a raise, bonus, promotion, and actual recognition for excellent performance.

    5) The on-going sale of landmark properties and under-performing businesses has also worked to diminish the AIG brand at home in the US, and overseas as well.

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