Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

AIG chairman Harvey Golub resigns

By Julianne Pepitone, staff reporter

NEW YORK (CNNMoney.com) -- American International Group chairman Harvey Golub resigned effective immediately Wednesday, citing issues with chief executive Bob Benmosche.

Benmosche told AIG's board of directors that his working relationship with Golub was "ineffective and unsustainable," Golub said in his resignation letter.

"I view asking the Board to choose between us [as] an abdication of my responsibility to lead," Golub added.

Golub said he is resigning for "the simple reason" that he believe it will be easier for AIG to replace its chairman than its CEO as the troubled insurer faces both corporate restructuring and the development of a plan to exit government control.

AIG (AIG, Fortune 500) has been selling off divisions of its company to pay back the $102 billion it owes taxpayers, after the struggling insurer took a series of bailouts from the government.

Robert S. (Steve) Miller will replace Golub. In his own statement, Miller said the company will "remain fully committed" to paying back the bailout money and restructuring to become a more focused insurer "worthy of investor confidence."

Miller, 68, was elected to AIG's board of directors in June 2009. To top of page

Index Last Change % Change
Dow 16,753.41 -23.02 -0.14%
Nasdaq 4,715.41 -65.85 -1.38%
S&P 500 1,972.88 -14.17 -0.71%
Treasuries 2.03 -0.03 -1.26%
Data as of 12:35pm ET
Company Price Change % Change
General Electric Co 27.17 0.35 1.31%
Bank of America Corp... 15.67 -0.02 -0.13%
Freeport-McMoRan Inc... 11.64 0.46 4.07%
Apple Inc 110.95 0.17 0.16%
Micron Technology In... 17.42 -0.14 -0.83%
Data as of 12:20pm ET