Threat or promise?

1 July 2010 By Richard Beales Follow @richardbeales1

The volatile Bob Benmosche fell out with his board and threatened to quit if Chairman Harvey Golub didn t. Now it seems the two men will try to work together. That s the more adult approach, but also safer for Benmosche after all, if a head rolls it could be his.

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Robert Benmosche, chief executive officer of American International Group, and Harvey Golub, the nonexecutive chairman, will try to resolve their differences, a source familiar with the situation said on July 1, a day after a Bloomberg report suggesting Benmosche had threatened to resign unless Golub left.

Boardroom tensions rose after the sale of AIG's Asian unit to the UK's Prudential fell through. Benmosche had wanted to accept a reduced price to keep the deal alive, but the company's board voted him down. The deal's failure set back the troubled insurer's plans to repay the U.S. government's massive bailout.

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Threat or promise?

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