AIG

Definition

American International Group, Inc. (AIG) is a global insurance and financial services organization. It plays a significant role in corporate governance due to its influence and size in the financial sector.

5 Must Know Facts For Your Next Test

1. AIG's Board of Directors is responsible for overseeing the company's management and ensuring accountability.
2. The Board includes independent directors to prevent conflicts of interest and promote objective decision-making.
3. AIG faced significant scrutiny during the 2008 financial crisis, highlighting the importance of effective corporate governance.
4. The CEO of AIG reports directly to the Board, which has the authority to hire or fire top executives.
5. AIG has implemented various governance reforms post-crisis to enhance transparency and risk management.

Review Questions

• What is the primary responsibility of AIG's Board of Directors?
• How did the 2008 financial crisis impact AIG’s approach to corporate governance?
• Why are independent directors important on AIG's Board?

Related terms

Board of Directors:

A group of individuals elected to represent shareholders and oversee major decisions in an organization.

Corporate Governance:

The system by which companies are directed and controlled, focusing on the relationship between stakeholders, management, and the board.

Independent Director: A member of a board who does not have a material relationship with the company and can make unbiased decisions.