NEW YORK - American International Group Inc.'s (AIG) directors, after hastily pushing out Maurice "Hank" Greenberg as chief executive this week, now are considering whether to have him sever all ties with the large insurer, people familiar with the matter told The Wall Street Journal.

The AIG board is considering an early end to Mr. Greenberg's new role as nonexecutive chairman, perhaps as soon as May, the people say.

Under pressure from regulators, AIG directors also are reviewing whether to seek changes in three closely held companies essentially run by Mr. Greenberg that together control about 16% of AIG's shares, the people say.

At least one of the companies - C.V. Starr & Co., an insurance broker that does business with AIG - is likely to be sold by its owners, people familiar with the matter say. Mr. Greenberg is C.V. Starr's president and chief executive and owns 16.4% of its common shares.

Regulators, as part of a broad investigation into AIG's activities, are examining whether these companies and their cross-ownership by AIG executives pose potential conflicts of interest, according to a person familiar with the investigation.

The AIG moves are part of continuing damage-control efforts by the board as the world's largest insurer grapples with growing regulatory pressure, including a probe into a transaction AIG did with a unit of Warren Buffett's Berkshire Hathaway Inc. four years ago.

Pressed by AIG's independent directors, Mr. Greenberg, 79 years old, agreed to step down as AIG's chief executive Monday. Mr. Greenberg had no comment, said his lawyer David Boies . AIG also declined to comment, a spokesman said.

Wall Street Journal Staff Reporter Monica Langley contributed to this report. Dow Jones Newswires 03-16-05 0013ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.