Friday, April 03, 2009

PR War 

AIG is finding out what it is like to be in a protracted PR war with its vengeful ex-CEO. It's not pretty, and it is distracting at a time when AIG's CEO needs to focus his full attention on turning the company around. The war is also telling. Greenberg was a much-feared CEO when he was in charge of the company whose power turned to fury when he was turned out.

There are no rulebooks for this situation. Meeting some of Greenberg's demands will not make him any happier. Returning him to power is politically impossible because some of the company's failures began on his watch, and now, the company is in the middle of a break-up anyway. The current CEO must focus on his work and let Greenberg say and do what Greenberg will. Meanwhile, the media will cover the battle because it makes good headlines.

Letting Greenberg say and do what he will could be the best solution to the problem. Greenberg's history of being ousted following investigations - even investigations led by Spitzer - is very damaging to his credibility, and I think many publics would agree with this view.

Post a Comment

This page is powered by Blogger. Isn't yours?