AIG 2008 Annual Report Download - page 25

As a result of the reduction of the credit ratings of AIG and its subsidiaries, uncertainty relating to AIG’s
financial condition and AIG’s asset disposition plan, AIG’s businesses have faced and continue to face intense
competition to retain existing customers and to maintain business with existing customers and counterparties at
historical levels. Further, AIG has been and continues to be at a significant disadvantage in soliciting new
customers. AIG expects these difficult conditions to continue for the foreseeable future.
Competition is also intense for key employees. The announced asset dispositions, decline in AIG’s common
stock price and uncertainty surrounding AIG’s financial condition have adversely affected AIG’s ability to retain
key employees and to attract new employees. While AIG has granted retention awards and taken other steps to
retain its key employees, no assurance can be given that these actions will be successful.
For a further discussion of the risks of AIG’s disadvantage in soliciting new customers and losing key
employees, see item 1A. Risk Factors — Employees.
Directors and Executive Officers of AIG
All directors of AIG are elected for one-year terms at the annual meeting of shareholders. All executive officers
are elected to one-year terms, but serve at the pleasure of the Board of Directors.
Except as hereinafter noted, each of the executive officers has, for more than five years, occupied an executive
position with AIG or companies that are now its subsidiaries. There are no arrangements or understandings between
any executive officer and any other person pursuant to which the executive officer was elected to such position. Prior
to joining AIG in September 2008, Mr. Liddy served at the private equity investment firm of Clayton, Dubilier &
Rice, Inc. during 2008. From January 1999 until his retirement in April 2008, Mr. Liddy served as Chairman of the
Board of The Allstate Corporation (Allstate), the parent of Allstate Insurance Company. He also served as Chief
Executive Officer of Allstate from January 1999 to December 2006 and President from January 1995 to May 2005.
Ms. Reynolds was President and Chief Executive Officer of Safeco Corporation from January 2006 to September
2008 and Chairman from May 2008 to September 2008. Previously, Ms. Reynolds served as President and Chief
Executive Officer of AGL Resources, an Atlanta-based energy holding company, from 2000 to 2005 and Chairman
from 2002 to 2005. From January 2000 until joining AIG in May 2004, Dr. Frenkel served as Chairman of Merrill
Lynch International, Inc. Prior to joining AIG in September 2006, Ms. Kelly served as Executive Vice President and
General Counsel of MCI/WorldCom. Previously, she was Senior Vice President and General Counsel of Sears,
Roebuck and Co. from 1999 to 2003. From June 2004 until joining AIG in May 2007, Mr. Kaslow was a managing
partner of QuanStar Group, LLC (an advisory services firm), and, from January 2002 until May 2004, Mr. Kaslow
was Senior Executive Vice President of Human Resources for Vivendi Universal (an entertainment and telecom-
munications company).
AIG 2008 Form 10-K 19
American International Group, Inc., and Subsidiaries