NEW YORK (TheStreet) -- American International Group (AIG) said Wednesday that Chairman Steve Miller will step into the role of CEO on an interim basis if necessary, though the board doesn't expect that to happen immediately.
The insurance giant's board sought to assure investors that a succession plan is in place if current CEO Robert Benmosche has to step down, following his recent cancer diagnosis. Although he is undergoing aggressive chemotherapy treatment, Benmosche has said he's feeling "fine" and expects to continue in his role through 2012, as planned.
"In the event that Bob would become unwilling or unable to continue to effectively serve in his current role, our Chairman, Steve Miller, would step in as interim CEO of AIG for as long as it takes to identify and select a long-term replacement for Bob," the board said in a statement, following a unanimous vote.
Miller is known for his restructuring prowess, having helped shape Delphi, an auto parts supplier, into a classic turnaround story. Miller took over as chairman a few months ago, when Harvey Golub stepped down following clashes with Benmosche.The board said in its statement that Benmosche still "feels fine, continues to work a normal schedule, and the Board continues to assume that Bob will remain CEO on this  timetable." However, the board also seems to be handling the situation extra carefully. AIG has seen several CEOs come and go in short stints since the crisis erupted and investor confidence is perhaps more important now than ever. >>>AIG CEOs, Past and Present: Photo Gallery The U.S. Treasury Department will be selling a huge tranche of common stock over the next few of years as part of AIG's plan to repay its federal bailout tab. Since Benmosche outlined plans to become independent by 2012, the insurer's stock has gotten support from the market -- closing above $40 since Oct. 6. On Wednesday, shares dropped 0.5% to $41.82, but were recouping some of those losses in after-hour trading. "We are committed to management continuity and ensuring that we have established appropriate, orderly succession plans," the board's statement said. The succession-plan announcement came amid widespread speculation about who the next CEO may be. In interviews with TheStreet on Wednesday several insurance-industry sources mentioned a few internal and external candidates. Peter Hancock, who now oversees risk control at AIG, appears to be a leading contender. Jay Wintrob, head of domestic life and retirement, was also named as a viable choice, as were Miller and Donald Layton, a director who was nominated to the board by the Treasury Department after spending years as CEO of E-Trade (ETFC).
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