The reports and interviews are a mixed bag of opinions about what this means for the stability and the future of AIG. According to the Wall Street Journal, Benmosche seems to think he will remain at the helm for the foreseeable future. If he cannot remain in charge, he feels that the chairman of the Board can handle things until a successor can be chosen.  According to Reuters, Sean Egan (principal of Egan-Jones Ratings Co, which rates AIGs debt) seems to feel this is something to be concerned about. Egan seems to think keeping Benmosche in this spot for the short term might be acceptable, but he is not big on the idea of keeping the position unchanged for an extended period of time.

I’d like to think about this from the perspective of the health and operation of the company, not from the perspective of an investor. Let’s think about this together.

First, a 66 year old man is CEO and there is NO SUCCESSION PLAN.

Second, this is a company that has churned through 4 CEOs since the middle of 2008.

Third, I’ve not seen much in the news about the board deciding to act independently to find a successor.

Fourth, I’ve seen a lot of different opinions about the skill set needed by the next CEO, but nothing from the company.

Fifth, the current CEO of a company of this size has been diagnosed with an unspecified cancer and there is NO SUCCESSION PLAN and THERE IS NOBODY READY AND WAITING IN THE WINGS.

Sixth, this company currently owes the U.S. Government $100 Billion.

Seventh, this company has almost gone under in the past couple of years more than once.

If what we are hearing in the news is true, not only is there no succession plan, there also is no Continuity Plan. And that is appalling to me.

If you own a business, or if you are a partner in a business, and you have no succession plan, this situation should be making you think. How responsibly are you managing your business with regard to:

• Your employees
• The families of the owners or partners
• Your clients/customers
• Your creditors
• Your profession?

What would happen to your business in the next month if you were forced to announce to the public that the owner or partners would be out of commission for the next four months but that there is no reason for alarm because the young man who graduated from law or business school in June will be running the company indefinitely?

Don’t you think it is time to leave the ranks of the 60% of business owners and partners who have no succession plan?

If you think it is time to write a succession plan, call us now at 732-397-8489.