Edward Liddy To Step Down As CEO Of AIG

More

Liddy has been serving as chairman and CEO since September, when Henry Paulson asked him to step off the board of Goldman Sachs and up to the helm of the wobbling insurance giant. He will now stay on until the company -- which is to say the government -- picks a successor. (Or two successors, if they take his advice and split the chairman's seat from the CEO.)

Liddy has been working for a salary of $1 (with some equity and bonus possibilities) and said in a letter to Geithner, "My only stake is my reputation." Well, I think it's safe to say that particular stake was torn from his hands and driven straight through his heart.



gt_liddy_090318.jpg

Two points about this. First, I think worth remembering that Liddy inherited just about all of those bonus contracts. (Not all of them, but most of them.) Reasonable people can disagree about how well or poorly Liddy handled the fuss, but if the bone you want to pick is over bonuses, you don't want to head to Liddy's table. Introduce yourself to Joe Cassano.

Second, this really can't be that surprising. Liddy's job was pretty much thankless, and he was appointed by Paulson. Since the government owns the company, keeping him in place would be somewhere along the spectrum towards keeping Condi Rice at the State Department.

On the other hand, AIG will now have had five (!) CEOs since 2005, which sort of reminds me of that time a while back when Argentina had five presidents in three years.  I don't know if anyone remembers that fondly. Sometimes continuity is nice.


Photo from Getty Images

Jump to comments
Presented by

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism. He was previously a fellow at The Atlantic and an editor at The Guardian. More

Conor Clarke is the editor, with Michael Kinsley, of Creative Capitalism, an economics blog that was recently published in book form by Simon and Schuster. He was previously a fellow at The Atlantic and an editor at The Guardian. He is also on Twitter.
Get Today's Top Stories in Your Inbox (preview)

Tracing Sriracha's Origin to a Seaside Town in Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where the Wild Things Go

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Adults Need Playtime Too

When was the last time you played your favorite childhood game?

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Politics

Just In