American International Group, Inc. (AIG) has announced in a press release the formation of a new executive leadership team.
The changes in the leadership team are designed to help execute the company's strategic priorities and provide value to its clients around the world.
AIG said that David Herzog, the company's CFO, will be leaving the company but will continue to serve as CFO through the filing of the company's 2015 Form 10-K.
Also leaving the company will be John Doyle, the CEO of Commercial Insurance, Jose Hernandez, the CEO of Asia Pacific, and Eric Martinez, the executive vice president of Global Claims and Operations.
Replacing Herzog will be Sid Sankaran the current chief risk officer, who will continue his current post until he becomes the CFO.
Alessa Quane will replace Sankaran as the chief risk officer while also continuing in the role of the chief corporate actuary.
Also joining AIG will be Douglas Dachile as chief investment officer, Philip Fasano as chief information officer, and Martha Gallo as chief auditor.
The company also welcomes Kevin Hogan as CEO of Consumer, Seraina Maag as CEO of Regional Management & Operations, Thomas Russo as general counsel of Legal, Compliance, Regulatory Affairs, and Government Affairs, and Jeffery Hurd as executive vice president of Transformation, Human Resources, and Administration.
Completing the company's new executive leadership team are Robert Schimek as CEO of Commercial, and Brian Schreiber as the chief strategy officer, and head of Corporate Marketing and Communications.
Peter D. Hancock, the president and CEO of AIG, said in the press release that the company's new management structure will ensure a "strong end-to-end accountability within the customer segments."
He said that new leadership structure helps the company "transform into a more efficient, less complex organization with accelerated decision-making in response to our clients' needs."
Reuters said that the changes come as tensions build between Hancock and Carl Icahn, an activist investor, over Icahn's suggestion in October that the company should spilt into three.
Hancock quickly rebuffed Icahn's suggestion.
Brett Horn, an analyst at Morningstar said that the changes in the executive leadership team may be a reaction to Icahn's criticisms.
"I think that has prompted a greater sense of urgency at the company," he said.
AIG's cost structure has remained a cause for concern for investors.
The company's underwriting operations are also suffering from falling rates for commercial property and casualty insurance.
AIG said that managing expenses and reducing structural costs are the key areas that they are focusing.
The company is currently targeting a reduction of 23 percent of senior management.
