Bob Benmosche

Robert Herman Benmosche
Born	(1944-05-29) 29 May 1944 Brooklyn, New York, U.S.
Died	27 February 2015(2015-02-27) (aged 70) Manhattan, New York, U.S.
Occupation	Business executive
Known for	President and CEO of American International Group (AIG)

Robert Herman Benmosche (May 29, 1944 – February 27, 2015) served as the president and CEO of American International Group (NYSE: AIG). He was selected by the US Department of Treasury alongside AIG’s Board of Directors to replace Edward M. Liddy. Benmosche is widely acknowledged for steering AIG through a critical recovery phase and successfully reimbursing the government funds received during the administrations of Presidents Bush and Obama.

Early life

Born in Brooklyn, New York, Benmosche’s Jewish ancestry originated from Lithuania; his great-grandfather Moshe Kreiskol was enlisted in the tsarist army during the 1830s, while his grandfather, Rabbi Herman Benmosche, immigrated to the United States in 1894.

Following his father’s death when Benmosche was ten years old—leaving behind a motel burdened with $250,000 in debt—the family continued operating the business. Throughout his youth, he took on various roles including working at the motel, serving as a caddie, and delivering goods. He graduated from New York Military Academy in 1962 and obtained a Bachelor of Arts degree in Mathematics from Alfred University in 1966. Between 1966 and 1968, he held the rank of lieutenant in the U.S. Army Signal Corps during a deployment in Korea, where he was responsible for establishing field communications.

Career

Benmosche began his professional journey as a consultant with Arthur D. Little and Information Science. In 1975, he transitioned to Chase Manhattan’s systems division. By 1982, he joined Paine Webber to spearhead the development of its Central Asset Brokerage Account. Over a span of fourteen years, he expanded his expertise in marketing and operational functions across various business sectors, ultimately becoming CFO of Paine Webber’s retail division. He advanced to executive vice president and took charge as director of operations, administration, and technology, managing the integration of Kidder Peabody’s operations into Paine Webber.

MetLife

In 1995, Benmosche entered Metropolitan Life Insurance Company, ascending to president and COO by 1997 with oversight of individual, institutional, and international insurance divisions. He assumed the roles of chairman and CEO in 1998 and retired in 2006. During his tenure, he guided MetLife through its transformation from a mutual company into a publicly traded entity.

After an eleven-year board membership at Credit Suisse AG, Benmosche stepped down in April 2013.

Lafayette Theatre

In 2001, Benmosche acquired the historic Lafayette Theatre, built in 1923 and located in Suffern, New York, championing its preservation efforts.

Innkeeper and vintner

Benmosche was the proprietor of Villa Splendid, located in Dubrovnik, Croatia. After acquiring the former nightclub in 2001, he dedicated six years to its extensive refurbishment. In 2006, he purchased additional land and brought in 1,500 Zinfandel grapevines from Napa Valley. By 2011, his vineyard was producing 3,000 bottles marketed under The Benmosche Family Dingac label.

AIG turnaround

Benmosche took on the role of CEO at American International Group in mid-2009, officially beginning his tenure on August 10. His appointment came through the recommendation of Jim Millstein, who served as Chief Restructuring Officer at the U.S. Department of Treasury.

Soon after starting, Benmosche stirred controversy with comments targeting Congress and New York Attorney General Andrew Cuomo, while also voicing dissatisfaction with government-imposed salary caps.

In 2010, during testimony before the Congressional Troubled Asset Relief Program (TARP) Oversight Panel, he assured that AIG would fully reimburse the U.S. Government and taxpayers with a profit margin. He declared, "AIG is now on a clear path to repaying taxpayers ... At the end of the day, the U.S. government will make an appropriate profit."

Under his leadership, AIG sold off non-essential assets to lower the $182 billion government assistance. Significant sales included American Life Insurance Company (Alico), American General Finance, 21st Century Insurance, Nan Shan, and AIA.

On December 14, 2012, Benmosche announced that both the U.S. government and taxpayers had recovered their entire investment plus an additional $22 billion in returns. His stewardship is recognized for reinstating profitability, fully repaying the Federal Reserve Bank of New York, decreasing Treasury’s ownership in AIG to below 20%, and completely settling the $85 billion federal loan from 2008.

Illness

In 2010, Benmosche received a diagnosis of lung cancer but continued his professional duties while undergoing intensive oral chemotherapy treatment. During a December 2012 interview with Charlie Rose, he expressed intentions to remain as CEO for an additional two years. However, by August 2014, worsening cancer compelled him to expedite his retirement plans. Peter Hancock succeeded him as CEO starting September 1, 2014. Benmosche died on February 27, 2015, in Manhattan at age 70.

Controversy over bonuses

In September 2013, during an interview with The Wall Street Journal, Benmosche likened public anger over AIG bonuses to the lynching of African-Americans in the Deep South. This comment referenced the $165 million paid out in March 2009 to employees within AIG's "financial products" division—whose actions had contributed heavily to AIG’s near-collapse and subsequent bailout that escalated from $85 billion to $182.7 billion by the Federal Reserve. His statement provoked widespread condemnation for being insensitive and offensive; Congressman Elijah Cummings called for his resignation.

In response to the backlash, Benmosche issued a public apology two weeks later.

Honors

• In 2010, Insurance and Technology magazine recognized Benmosche as one of the insurance sector’s most "Tech-Savvy CEOs."
• He was positioned 42nd on Fortune magazine's list of Top 50 Business Leaders for the year 2010.
• Andrew Ross Sorkin of The New York Times DealBook awarded him the title of “2010 Executive of the Year.”
• In January 2010, Harvard Business Review ranked him 59th among the Top 100 CEOs.
• The year 2011 saw him acknowledged as a “Mover and Shaker” by Insurance and Technology magazine.
• The New York Police & Fire Widows’ & Children's Benefit Fund honored him in 2012.
• His induction into the Insurance Hall of Fame occurred in 2013.

External links

• Robert H. Benmosche Executive Biography