AIG changes bylaw to ensure chairman's independence

American International Group (AIG) Inc, the insurer that appointed a new chief executive officer and chairman this month, amended its bylaws to make sure the board’s leader is independent from management.

AIG directors amended the New York-based company’s bylaws to specify that the chairman is independent under New York Stock Exchange listing standards, the firm said today in a regulatory filing. The company split the top leadership roles held by Edward Liddy, naming Robert Benmosche its CEO and Harvey Golub its chairman.

The insurer reported its first quarterly profit this month after more than $100 billion in net losses over six prior periods. AIG’s leaders have to retain customers and employees to preserve the value of operations that will be sold to repay loans included in the company’s $182.5-billion US rescue.

Liddy, who took over in September after the insurer received its first government bailout, endured two Congressional hearings during his 10-month tenure and said in May that AIG should have a separate chairman who works with lawmakers.

The bylaw change was effective August 10, the day that Golub and Benmosche began their jobs. AIG also said it eliminated the position of lead independent director.

Benmosche, 65, was chairman and CEO of MetLife Inc, the largest US life insurer, for eight years through 2006 and oversaw the company’s transition to a publicly-traded business from a policyholder-owned firm.