New AIG Head Scans the Market for Deals
After suffering from heavy losses due to the recent global economic meltdown and nearing bankruptcy, the American International Group (AIG) heaved a sigh of relief when the United States government bailed the finance and insurance investment company out of their financial woes.
However, the wave has not yet been crested as the now government-financed AIG (under its new Chief Executive Officer Edward Liddy) must find big, substantial deals to further keep the company afloat. If no lucrative deal will be made soon, AIG might face manpower exodus and yet another crisis.
Edward Liddy looks to sell the AIG Financial Advisors Group, whose head Jeff Auld has been toiling hard to keep the company intact. Auld has already sent a letter to the employees saying that they need to stand fast amidst offers from other companies of greener pastures and financial security, until more lucrative opportunities have been clearly defined.
For his contribution to help the company, CEO Edward Liddy agreed to a $1 salary. However, even this seems to be inadequate to counter the current problem AIG is facing.
Jonathan Henschen of the Minnesota-based recruiting firm Henschen and Associates and several financial experts believe that unless Edward Liddy successfully sells AIG Advisors Group, significant numbers of their employees will tender their resignation and look for other jobs. If a crisis of manpower shortage does occur, AIG will indeed have more than finances to worry about.
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