Word: starr
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...Starr disputes that, saying the beneficiary of the shares was always a charitable trust and that the company, which has Greenberg as its chairman, can use the stock as it pleases...
...Although the outcome of the case will likely hinge on interpretations of legal agreements signed years ago, Greenberg's credibility was on trial on June 16, when the former AIG chief executive took the stand. AIG's lead attorney, Ted Wells, said that Greenberg and other members of Starr's board of directors had broken an agreement not to sell their AIG shares. (Read "How AIG Became Too Big to Fail...
...meant to be used to benefit employees. "You stated to the participants that the stock was being preserved for future AIG employees," Wells said to Greenberg. "Was it just a coincidence that you said that again and again?" Wells pointed to a "Statement of Commitment" that Greenberg and other Starr directors signed in 1992 pledging that Starr would maintain its investment in AIG despite "unforeseeable" changes in the future...
...That [selling the AIG stock] was not a breach of our fiduciary responsibility," Greenberg replied. He maintained that Starr - which was long operated as if it were a private subsidiary of AIG - is an independent company with the right to end the compensation plan as well as the right to sell its shares...
...Until 2005, Greenberg was the head of both AIG and Starr, which was one of a number of companies that were the predecessors to the modern AIG. When AIG was formed in the late 1960s and taken public, Starr was given hundreds of millions of shares of the new company. Controlled by AIG executives, Starr was given the shares as a defense against hostile takeovers of the insurance giant. Five years later, Starr set up the disputed long-term compensation plan that for many years rewarded AIG executives from Starr's trove of company stock when the insurer's profits...