I started to pay attention to the troubled insurer, American International Group (AIG), when I read about its newly appointed chief executive officer (CEO), Robert Benmosche, and his sea side villa in Croatia.
Being an accomplished former chief executive of MetLife Inc., Mr. Benmosche seems to be the right person for the challenge. But the fact got most of my attention was the new executive’s decision to manage the nearly bankrupt company at his far away vineyard by the Adriatic Sea.
Even though I do agree with Mr. Benmosche’s insightful comments on outside consultants, I, not a sour grape( no pun intended), do have some reservations about absentia managers. As I learned later, it was an issue with AIG’s directors when Mr. Benmosche did not want to cancel his planned summer getaway.
I also noticed AIG’s share price rose 400% to above US$50 a share over the last few months. With scarcely any good news on the company, I wonder why the stock of a company with such grim prospect can be this pricey? - Ayee
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