Tuesday, December 13, 2005

AIG Improves Corporate Governance

AIG appoints a special counsel and secretary to its own board. In what appears to be a refreshing new approach the board of AIG will now have its own special counsel and secretary. The corporation will also have its own counsel and secretary, which has been a traditional function. The board’s secretary will also retain certain corporate functions. While I applaud the new vision why not go all the way and establish completely independent staff. AIG, which as an insurer underwrites a wide variety of liability insurance, seems to be splitting hairs with its own governance. This may be very important during the next scandal. Who reports to whom? What masters do you really serve?