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