Edward M. Liddy
Encyclopedia
Edward Michael Liddy was the chairman and chief executive officer of American International Group
(AIG) from 2008 to 2009 during the late-2000s financial crisis
.
, New Jersey
, Liddy prepped at the Trinity-Pawling School
for Boys (Founder's League), located on the hills overlooking Pawling, New York. He holds a B. A.
degree from The Catholic University of America
(1968) and holds an MBA from George Washington University
(1972).
until 1981 when he joined Searle
. From 1986 to 1988. Liddy was executive vice president of ADT, Inc. In 1988 he moved to Sears and then in 1994 to Allstate
where chief operating officer until 1999 and president until 2005.
Liddy was on the board of Goldman Sachs
from 2003 to 2008, when he resigned to become CEO of AIG
. He was selected by Henry Paulson
for both roles.
. As CEO of AIG, Liddy received a salary of just $1, but also received $460,000 to cover "housing, travel, taxes and legal fees".
Liddy garnered national headlines in October 2008 for defending a controversial $440,000 AIG retreat for top-performing insurance salesmen at the luxury St. Regis Resort in Monarch Beach, California. The retreat, which was held shortly after the U.S. government rescued AIG from insolvency with $84 billion in loans, included $200,000 for rooms, $150,000 for meals and $23,000 for the spa. In testimony before the U.S. House Oversight Committee, Liddy stated that such retreats "are standard practice in our industry." During the U.S. presidential debate on October 7, 2008, Democratic presidential nominee Sen. Barack Obama
mentioned the retreat and said, "The Treasury should demand that money back and those executives should be fired."
In light of the AIG bonus payments controversy
, Liddy urged employees to return $165m issued in bonuses to them, suggesting doing the "right thing" and returning at least part of the bonus is preferable to legal action, noting “honoring contractual commitments is at the heart of what we do in the insurance business.” While Mr Liddy called the bonuses “distasteful” in an appearance in the House of Representatives, it later transpired that Liddy had accelerated more than a quarter of AIG Financial Products
bonuses by three months, which Jake DeSantis described as “hardly something that one would do if he truly found the contracts ‘distasteful’.”
Liddy owned 27,129 shares in Goldman Sachs, at the time worth just over $3 million. In April 2009 members of Congress
called for Liddy to sell these shares, as they created a conflict of interest due to Goldman Sachs' receipt of bailout money.
Liddy announced on May 21, 2009 that he would resign as AIG Chairman and CEO when replacements were found, suggesting that the two roles be split. In August 2009, Robert Benmosche
took over as CEO and Harvey Golub
as chairman.
and Boeing
. He is chairman of ServiceMaster
and a partner of private equity
firm Clayton, Dubilier & Rice.
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
(AIG) from 2008 to 2009 during the late-2000s financial crisis
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...
.
Early life
Born in New BrunswickNew Brunswick, New Jersey
New Brunswick is a city in Middlesex County, New Jersey, USA. It is the county seat and the home of Rutgers University. The city is located on the Northeast Corridor rail line, southwest of Manhattan, on the southern bank of the Raritan River. At the 2010 United States Census, the population of...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, Liddy prepped at the Trinity-Pawling School
Trinity-Pawling School
Trinity-Pawling School is an all boys private high school in Pawling, New York. Dr. Frederick Luther Gamage, once Headmaster of St. Paul's School in Long Island, founded the Pawling School in 1907. Located on high on a hill overlooking the Hudson River Valley, Trinity-Pawling has a colonial brick...
for Boys (Founder's League), located on the hills overlooking Pawling, New York. He holds a B. A.
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
degree from The Catholic University of America
The Catholic University of America
The Catholic University of America is a private university located in Washington, D.C. in the United States. It is a pontifical university of the Catholic Church in the United States and the only institution of higher education founded by the U.S. Catholic bishops...
(1968) and holds an MBA from George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
(1972).
Career
Liddy worked for Ford Motor CompanyFord Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
until 1981 when he joined Searle
G. D. Searle & Company
G.D. Searle & Company or just Searle was a company focusing on life sciences, specifically pharmaceuticals, agriculture, and animal health. It is now part of Pfizer.- History :...
. From 1986 to 1988. Liddy was executive vice president of ADT, Inc. In 1988 he moved to Sears and then in 1994 to Allstate
Allstate
The Allstate Corporation is the second-largest personal lines insurer in the United States and the largest that is publicly held. The company also has personal lines insurance operations in Canada. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993...
where chief operating officer until 1999 and president until 2005.
Liddy was on the board of Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
from 2003 to 2008, when he resigned to become CEO of AIG
AIG
AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran...
. He was selected by Henry Paulson
Henry Paulson
Henry Merritt "Hank" Paulson, Jr. is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.-Early life and family:...
for both roles.
As CEO of AIG
Liddy became CEO of AIG in September 2008, succeeding Robert B. WillumstadRobert B. Willumstad
Robert B. Willumstad is a former Chairman and CEO of the American International Group .He was born in Brooklyn and grew up on Long Island. His alma mater is Adelphi University....
. As CEO of AIG, Liddy received a salary of just $1, but also received $460,000 to cover "housing, travel, taxes and legal fees".
Liddy garnered national headlines in October 2008 for defending a controversial $440,000 AIG retreat for top-performing insurance salesmen at the luxury St. Regis Resort in Monarch Beach, California. The retreat, which was held shortly after the U.S. government rescued AIG from insolvency with $84 billion in loans, included $200,000 for rooms, $150,000 for meals and $23,000 for the spa. In testimony before the U.S. House Oversight Committee, Liddy stated that such retreats "are standard practice in our industry." During the U.S. presidential debate on October 7, 2008, Democratic presidential nominee Sen. Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
mentioned the retreat and said, "The Treasury should demand that money back and those executives should be fired."
In light of the AIG bonus payments controversy
AIG bonus payments controversy
The AIG bonus payments controversy began in March 2009, when it was publicly disclosed that the American International Group was to pay approximately $218 million in bonus payments to employees of its financial services division....
, Liddy urged employees to return $165m issued in bonuses to them, suggesting doing the "right thing" and returning at least part of the bonus is preferable to legal action, noting “honoring contractual commitments is at the heart of what we do in the insurance business.” While Mr Liddy called the bonuses “distasteful” in an appearance in the House of Representatives, it later transpired that Liddy had accelerated more than a quarter of AIG Financial Products
AIG Financial Products
AIG Financial Products Corporation. is a subsidiary of the American International Group, headquartered in Fairfield, CT, with major operations in London, it is currently in the process of winding down all of its operations. The collapse of AIG Financial Products is considered to have played a...
bonuses by three months, which Jake DeSantis described as “hardly something that one would do if he truly found the contracts ‘distasteful’.”
Liddy owned 27,129 shares in Goldman Sachs, at the time worth just over $3 million. In April 2009 members of Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
called for Liddy to sell these shares, as they created a conflict of interest due to Goldman Sachs' receipt of bailout money.
Liddy announced on May 21, 2009 that he would resign as AIG Chairman and CEO when replacements were found, suggesting that the two roles be split. In August 2009, Robert Benmosche
Robert Benmosche
Robert H. Benmosche is the chief executive officer of American International Group.-Early life:Benmosche was born in Brooklyn, New York. Benmosche's ancestors were Jews originally from Lithuania and Poland.-Career:...
took over as CEO and Harvey Golub
Harvey Golub
Harvey Golub is a business executive, most recently the Chairman of the Board at American International Group . His resignation as AIG chair was announced on July 16, 2010...
as chairman.
Career after AIG
As of September 2011, Liddy is on the board of directors for 3M3M
3M Company , formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota, United States....
and Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
. He is chairman of ServiceMaster
ServiceMaster
ServiceMaster is a privately held Fortune 500 company that provides various services to residences and firms. Its headquarters are located in Memphis, Tennessee after moving there from Downers Grove, Illinois in early 2007. Brands operated by ServiceMaster include: TruGreen, Terminix, American...
and a partner of private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm Clayton, Dubilier & Rice.
External links
- 10 Things You Didn't Know About Edward Liddy from U.S. News and World Report.