NEW YORK, March 18 (UPI) -- Maurice Greenberg no longer heads A.I.G, but his sway over the New York-based insurance giant continues thanks to his helm at two related entities.
Greenberg stepped down this week as chief executive officer of the American International Group, but continues to be a top executive at the private firms of C.V. Starr and the Starr International Co., the New York Times reported Friday.
As a result, he holds the reins over the vehicles that dole out compensation to A.I.G. executives, the Times said. He is also the chairman of Starr Foundation, a large private foundation that contributes to groups and charities run by the company's directors.
Greenberg still has "an inordinate amount of control for an ousted CEO," said a partner at a firm specializing in litigating shareholder class-action cases on behalf of investors, the Times said.
A.I.G.'s stock price has dropped 17 percent since the company disclosed last month it had received subpoenas from the Securities and Exchange Commission and the New York attorney general. Investors are now asking for new management and board to demonstrate their independence from Greenberg.
Regulators are checking into transactions in 2000 and 2001 that helped bolster A.I.G.'s financial position.
