American International Group Inc. is getting a new chief financial officer and forming an executive leadership team as the insurance provider faces pressure from activist investor Carl Icahn to break itself into three separate companies.
AIG said Thursday that Chief Risk Officer Sid Sankaran will become CFO after the company files its 2015 annual statement at the end of February. He will replace David Herzog, who is retiring.
The New York company also outlined a team of several executives, including Sankaran, that will report to President and CEO Peter D. Hancock. That 10-person team will help AIG become a “more efficient, less complex organization with accelerated decision-making in response to our clients’ needs,” Hancock said in a statement.
Sankaran joined AIG in 2010 after serving as a partner in the finance and risk practice at Oliver Wyman Financial Services.
Herzog and three other senior executives will leave the company “after a period of transition,” the company said
Icahn has said AIG is “too big to succeed,” a play on the phrase “too big to fail,” which was used during the financial crisis to explain why the government was forced to bail out AIG and prevent its total collapse. The investor said he has he has spoken to Hancock several times, and the CEO remains unwilling to split up the insurer.
Icahn has vowed to reach out to shareholders directly and said he may propose adding a new director who would agree to succeed Hancock as CEO if asked by the board to do so.