American General announces CEO succession plan.of American General Corporation (NYSE NYSE See: New York Stock Exchange - AGC AGC Automatic Gain Control AGC Automotive Glass Cartridge (fuse) AGC Associated General Contractors AGC Associated General Contractors of America AGC Atypical Glandular Cells AGC Attorney-General's Chambers ) today announced the adoption of a plan of succession for long-time chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Harold S Harold, 1022?–1066, king of England (1066). The son of Godwin, earl of Wessex, he belonged to the most powerful noble family of England in the reign of Edward the Confessor. Through Godwin's influence Harold was made earl of East Anglia. . Hook. Under the plan, Robert M. Devlin, president, will succeed Hook as chief executive officer a year from now, in October 1996, and Hook will continue as chairman until the annual shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. in 1997. Devlin will become only the fourth CEO since the company's founding in 1926. In connection with the plan, the board also announced a realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. in the office of the chairman. Devlin, formerly vice chairman, was named president, replacing James R. Tuerff who has taken early retirement and will be establishing a consulting practice. Jon P. Newton, formerly senior vice president and general counsel, was elected vice chairman and director, joining Messrs. Hook and Devlin in the office of the chairman. Newton will continue as the company's general counsel. In commenting on the announcement, Hook said, "Bob has had a distinguished career with American General and has demonstrated the qualities the board was looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. to lead the company into the next century." Hook, 64, joined American General in 1970 as president of an insurance subsidiary. He was elected president of the parent company in 1975 and chairman and CEO in 1978. A Chartered Life Underwriter (CLU (language) CLU - (CLUster) An object-oriented programming language developed at MIT by Liskov et al in 1974-1975. CLU is an object-oriented language of the Pascal family designed to support data abstraction, similar to Alphard. ), Hook holds two degrees - BS and MA - from the University of Missouri (Columbia). Devlin, 54, joined American General in 1977 in an insurance subsidiary, and has served in a broad range of positions in the parent company and in operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . Prior to being elected as vice chairman in 1993, he served seven years as president and CEO of American General Life Insurance Company, headquartered in Houston. A Chartered Life Underwriter (CLU), he holds a BA degree in Economics from Tulane University History Founding/early history The University dates from 1834 as the Medical College of Louisiana.<ref name="facts" /> With the addition of a law department, it became The University of Louisiana . Newton, 54, joined the company in 1993 as senior vice president and general counsel, and prior to that time was a partner in the Austin law firm of Clark, Thomas, Winters & Newton. He holds two degrees - BA and JD - from The University of Texas. Earlier this year, he completed the Advanced Management Program at Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. . American General is one of the nation's largest diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services organizations with assets of $60 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $5.5 billion. Headquartered in Houston, it is a leading provider of retirement annuities, consumer loans, and life insurance to eight million households. American General Corporation common stock is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Pacific, London, and Swiss stock exchanges. -0- Supplement to above release, dated Oct. 26, 1995, Entitled: "AMERICAN GENERAL ANNOUNCES CEO SUCCESSION PLAN" ----------------------------------------------------------------------- The Board of Directors of American General Corporation today announced the adoption of a plan of succession for long-time chairman and CEO Harold S. Hook. Under the plan, Robert M. Devlin, president, will succeed Hook as chief executive officer a year from now, in October 1996, and Hook will continue as chairman until the annual shareholders' meeting in 1997. Below, in question-and-answer format, are comments from Hook, regarding the succession plan and related issues. -0- 1. Q. Why is the succession plan being announced at this time?
A. The board reached its decision following an active two-year
selection process. In view of my long service as CEO, the board
and I decided that one year was the appropriate period for an
orderly transition.
2. Q. What is the office of the chairman?
A. At American General, it is the organizational unit to which all
subsidiary CEOs and parent company senior officers report, and
its members function both individually and as a team.
3. Q. What is the ranking in the office of the chairman?
A. Although the working relationship is collegial in nature, in
situations where rank is an issue, the order will be Hook, Devlin
and Newton.
4. Q. Will the succession plan have an impact on the way the office of
the chairman operates between now and October 1996?
A. The normal operation of the office of the chairman provides ample
opportunity for the succession transition.
5. Q. What will your responsibilities be after October 1996?
A. That would be up to the board and the new CEO. However, I have
previously agreed with the board to continue as chairman until
the annual shareholders' meeting in 1997.
6. Q. Will you be continuing on the board after retirement?
A. Under our current bylaws, as a former chief executive officer, I
would be eligible to serve an additional five years. However, I
do not plan to stand for election in 1997.
7. Q. How many senior officers will reach normal retirement age in the
next seven years?
A. Out of the top 18 senior officers in the parent and operating
subsidiaries, only three will reach the normal retirement age of
65 in the next seven years.
CONTACT: American General Corporation Robert D. Mrlik, vice president-investor relations, 713/831-1137; or John E. Pluhowski, director-corporate communications, 713/831-1149 |
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