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AIG names Chief Risk Officer Sid Sankaran as its next CFO (AIG)
AIG on Thursday announced a major management shakeup, which includes the replacement of CFO David Herzog.
Replacing Herzog is Chief Risk Officer Sid Sankaran. He will take over the position after AIG files its 10-K for 2015 in early 2016.
The company also announced the replacement of John Doyle, head of commercial insurance. He will be replaced by Rob Schimek, a former CFO of that unit who currently serves as AIG’s chief executive of the Americas.
“Our new management structure will ensure we have strong end-to-end accountability within the customer segments, so we can transform into a more efficient, less complex organisation with accelerated decision-making in response to our clients’ needs,” AIG president and CEO Peter Hancock said in a press release.
“We are moving forward with a continued sense of urgency on our four strategic priorities: narrowing our focus on clients, products, and geographies where we can grow profitably; driving for efficiency; growing through innovation and optimising our data assets and client relationships; and returning excess capital to shareholders,” he added.
Herzog has served as CFO since late 2008 and helped the insurer recover from its bailout during the recession. In October 2015, Herzog was appointed to the Federal Advisory Committee on Insurance by the Treasury Department.
AIG has come under pressure from billionaire activist investor Carl Icahn. In October, he suggested that AIG should be broken up into three separate companies: life insurance, property-casualty coverage, and a mortgage backer.
A former Google exec explains how he evaluates his senior leadership team (First Round Review)
Dave Girouard, CEO of personal finance startup Upstart and a former president of Google Enterprise, believes a leader must review their executive team on a regular basis.
“All great companies are committed to rigorous performance reviews, and Upstart is in that camp,” Girouard says. “We debate a lot about frequency of the process, as well as the scope and magnitude of each review, but there’s unanimity in our belief that regular and rigorous feedback in a quantified manner is necessary to maintain a commitment to excellence.”
Girouard uses six criteria to evaluate his top lieutenants, including execution and commitment. He says he needs to trust them “to meet one-on-one with our most critical constituencies on the most difficult topics.”
Non-GAAP numbers may confuse investors: SEC chair (Wall Street Journal)
SEC Chair Mary Jo White is warning companies that the use of non-GAAP measures in their financial reporting may be confusing investors.
“Companies often include non-GAAP figures in their communications with analysts and investors to highlight aspects of their financial performance that may not be evident using standard accounting practices,” The Wall Street Journal reports.
“Consider questions such as why are you using the non-GAAP measures and how does it provide investors useful information,” White said during a recent conference held by the American Institute of CPAs in Washington, D.C.
Company executives also need to consider if the explanations they give for using non-GAAP numbers are “accurate and complete,” according to The Journal.
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