Ed Liddy

Liddy was born in New Brunswick, New Jersey. After the death of his father in 1959, he moved to Clearwater, Florida, with his mother and older sister. He was a member of the first graduating class of Clearwater Central Catholic High School in 1964.{{cite news|title=Edward Liddy honored with Distinguished Alumni Award|url=http://www.tbnweekly.com/pinellas_county_schools/content_articles/032217_sch-01.txt|access-date=24 August 2017|publisher=Tampa Bay Newspapers Weekly|date=22 March 2017}} He earned his bachelor's degree from the Catholic University of America (1968) and MBA from George Washington University (1972).

Liddy began his career as a financial analyst with Ford Motor Company in 1972.{{cite news|title=The reappraisal of Edward Liddy|url=http://www.chicagobusiness.com/article/20050502/NEWS01/200016340/the-reappraisal-of-edward-liddy|access-date=2017-08-24|publisher=Crain's Chicago Business|date=2005-05-02}} He joined G.D. Searle & Co., and its CEO Donald Rumsfeld, in 1979, eventually becoming CFO. Upon the sale of Searle to Monsanto, he served from 1986 to 1988 as executive vice president and a member of the board of directors of ADT, Inc.{{cite news|title=AIG CEO Edward Liddy: Bio|url=https://www.mprnews.org/story/2008/10/22/corner_office_liddy_bio|access-date=24 August 2017|publisher=Minnesota Public Radio News|date=22 October 2008|archive-date=25 August 2017|archive-url=https://web.archive.org/web/20170825024930/https://www.mprnews.org/story/2008/10/22/corner_office_liddy_bio|url-status=dead}}

Upon the sale of ADT, Liddy joined Sears in April 1988 and served in a variety of financial and senior operating roles before being named chief financial officer in February 1992. In that role, he was the architect and implementer of the successful restructuring of Sears, which involved breaking the company into numerous public companies (Sears, The Allstate Corporation, Dean Witter) and selling non-core assets (Homart Development Company, Coldwell Banker Residential Broker, Sears Mortgage and Sears Savings Bank).{{cite news|title=No Bidder Shortage Seen for Coldwell Banker Real Estate|url=https://www.newspapers.com/newspage/177453762/|access-date=24 August 2017|work=Los Angeles Times|date=30 September 1992}} He led the 1993 initial public offerings of Dean Witter/Discover and Allstate, two of the largest ever IPOs at that time.{{cite news|title=America Loves Allstate--More Than $2 Billion Sold: Stock: Investors eager to buy into the Sears insurance unit snap up the issue at $27 a share|url=https://www.latimes.com/archives/la-xpm-1993-06-03-fi-43025-story.html|access-date=2017-08-24|work=Los Angeles Times|date=1993-06-03}} He also led the 1995 spinoff of Allstate from Sears.

After the IPO of Allstate, Liddy held positions of increasing responsibility with the Allstate Corporation, the largest publicly held personal lines property and casualty insurer in America,{{cite web|title=Allstate Overview: Our Story, About Allstate|url=https://www.allstate.com/about.aspx?intcid=ILC-OurStory-141201:AllstateOverview&_ga=2.249483847.1394954308.1497021555-1331398811.1495738942|website=Allstate.com|access-date=2017-06-16}} from 1994 to 2008. He served as chairman from January 1999 until his retirement in April 2008. He was chief executive officer from January 1999 until December 2006, and president and chief operating officer from August 1994 to December 1998. Under Liddy's leadership, the company was streamlined by exiting non-core businesses and the company expanded its distribution system beyond its traditional agency force to reach customers through the internet and call centers.{{cite web|title=Letter to Shareholders, The Allstate Corporation 2000 Annual Report.|url=https://www.allstate.com/resources/allstate/attachments/about/allstate-sar-2000.pdf|website=Allstate.com|access-date=24 August 2017}} During Liddy's tenure as president and then CEO, Allstate's market value more than tripled, from $11 billion (December 31, 1994) to over $40 billion (December 31, 2006).{{cite web|title=Letter to Shareholders, The Allstate Corporation 2006 Annual Report|url=https://www.allstate.com/resources/allstate/attachments/about/2006-allstate-sar.pdf|website=Allstate.com|access-date=24 August 2017}}

In September 2008, at the request of the Secretary of the U.S. Department of the Treasury, Liddy agreed to serve as interim chairman and chief executive officer of American International Group, Inc. (AIG). His placement in the role was one of numerous government actions to provide stability to U.S. financial firms during the 2007–2008 financial crisis. He requested a salary of just $1 per year.

The restructuring of AIG that Liddy took on was one of the largest in U.S. corporate history.{{cite news|title=Special report: Inside AIG's tortuous turnaround|url=https://www.reuters.com/article/us-aig-ipo-idUSTRE6BK3G020101221|access-date=24 August 2017|publisher=Reuters|date=21 December 2010}} He and the AIG team developed a strategy to stabilize the company and its $1.2 trillion balance sheet; keep the company out of bankruptcy; repay with interest all money invested in the company by various U.S. government entities, which eventually totaled $182 billion; and keep the remaining business that would comprise AIG vital and competitive.{{cite web|title=AIG 2008 Annual Report|url=http://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2008-annual-report.pdf|website=AIG.com|publisher=AIG|access-date=24 August 2017|url-status=dead|archive-url=https://web.archive.org/web/20161201215942/http://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2008-annual-report.pdf|archive-date=1 December 2016}}{{cite news|title=Testimony of Mr. Edward Liddy|url=http://graphics8.nytimes.com/packages/pdf/politics/fsc_testimony_of_mr_edward_liddy.pdf?mcubz=0|access-date=24 August 2017|work=The New York Times|date=18 March 2009}}

The government bailout of AIG{{cite news|title=Fed's $85 Billion Loan Rescues Insurer|url=https://www.nytimes.com/2008/09/17/business/17insure.html|access-date=24 August 2017|work=The New York Times|date=16 September 2008}} garnered national headlines in May 2009 when AIG, with the concurrence of the U.S. Treasury and Federal Reserve, paid earned bonuses to employees of its Financial Products Business, determining the payments were contractual obligations. Liddy noted that "honoring contractual commitments is at the heart of what we do in the insurance business."{{cite news|title=11 who got $1M bonuses no longer with AIG|url=https://abcnews.go.com/Business/story?id=7103785|access-date=24 August 2017|work=ABC News}} At the same time, he urged the employees who received $165 million in bonuses to "do the right thing" and return at least part of their bonus.{{Citation | url = https://abcnews.go.com/Business/Economy/story?id=7102844&page=1 | title = AIG CEO Liddy Calls Bonuses 'Distasteful'; Asks Execs to Return Money | last1 = Gomstyn | first1 = Alice | last2 = Herman | first2 = Charles | work = ABC News | date = 2009-03-19 | access-date = 2009-03-19 }}

Once the company was stabilized, a viable plan in place to repay the government assistance and a management team partially in place to execute the strategy, Liddy announced on May 21, 2009, he would resign as AIG chairman and CEO when replacements were found.{{cite news|title=Brought In to Lead AIG in Upheaval, Liddy to Resign|url=https://www.washingtonpost.com/wp-dyn/content/article/2009/05/21/AR2009052103465.html|access-date=24 August 2017|newspaper=Washington Post|date=22 March 2009}} He suggested the two roles be split.{{cite web | title = AIG's Liddy Stepping Down As CEO, Chairman Of Big Insurer | work = CNBC | date = 2009-05-21 | url = https://www.cnbc.com/2009/05/21/aigs-liddy-stepping-down-as-ceo-chairman-of-big-insurer.html | access-date = 2009-05-21}} In August 2009, Robert Benmosche took over as CEO and Harvey Golub as chairman.{{cite news|title=AIG Names Former Amex CEO Golub As Chairman|url=http://www.insurancejournal.com/news/national/2009/08/07/102834.htm|access-date=2017-08-24|publisher=Insurance Journal|date=2009-08-07}}

By December 2012, AIG had fully repaid the entire $182 billion, plus required interest, invested in the company by the government.{{cite news|title=AIG Makes Final Repayment to Government for Bailout|url=https://www.cnbc.com/2013/03/01/aig-makes-final-repayment-to-government-for-bailout.html|access-date=24 August 2017|publisher=CNBC|date=1 March 2013}}

Liddy served as a partner in the private equity investment firm Clayton, Dubilier & Rice, LLC from April to September 2008 and from January 2010 to December 2015.

Liddy serves on the board of directors of Abbott Laboratories,{{cite web|title=Governance: Board of Directors|url=http://www.abbott.com/investors/governance/board-of-directors-and-committees.html|website=Abbott|access-date=2017-06-02}} AbbVie Inc.{{cite web|title=Our Company, Leadership, Board of Directors: AbbVie|url=https://www.abbvie.com/our-company/leadership.html|website=AbbVie|access-date=2017-06-02}} and the Forum Club of Southwest Florida.{{Cite web|title=Forum Club of Southwest Florida, Inc.|url=https://www.theforumclub.org/|access-date=2021-01-10|website=www.theforumclub.org}} He previously served on the board of directors of 3M Company and the Boeing Company.

Liddy has been actively involved in a number of philanthropic and civic endeavors. He serves as a life trustee for Northwestern University.{{cite web|title=Northwestern University: Administration and Planning, Board of Trustees, Life Trustees.|url=http://www.adminplan.northwestern.edu/board-of-trustees/life/index.html|website=Northwestern University|access-date=2017-08-24}} He is also life trustee and chairman emeritus of Northwestern Memorial Hospital in Chicago, a life trustee of the Museum of Science and Industry in Chicago{{cite web|title=Museum of Science and Industry Chicago: About Us, Leadership, Board of Trustees|url=https://www.msichicago.org/explore/about-us/leadership/board-of-trustees/|publisher=Museum of Science and Industry Chicago|access-date=2017-08-24}} and a life trustee and former national chairman of the Boys & Girls Clubs of America. He served as chairman of the Civic Committee of the Commercial Club of Chicago as well as chairman of the club. He also served as chairman of the Executives Club of Chicago and Metropolitan Family Services.

{{Reflist}}

• Bell, Debra (March 18, 2009). [https://www.usnews.com/articles/news/national/2009/03/18/10-things-you-didnt-know-about-aig-ceo-edward-liddy.html "10 Things You Didn't Know About Edward Liddy"]. U.S. News & World Report.
• Yerak, Becky (September 18, 2008). [https://web.archive.org/web/20170825034554/http://articles.chicagotribune.com/2008-09-18/business/0809170916_1_aig-troubled-insurer-allstate-ceo {{"'}}Steady hand' Liddy picked to head AIG"]. Chicago Tribune.
• Liddy, Edward M. (March 18, 2009). [https://www.washingtonpost.com/wp-dyn/content/article/2009/03/17/AR2009031703019.html "Repairing AIG and Repaying the Public"]. The Washington Post.
• [http://content.time.com/time/business/article/0,8599,1900429,00.html "Behind Ed Liddy's Departure from AIG"]. Time. May 22, 2009
• Eder, Steve (May 21, 2009). [https://www.reuters.com/article/us-aig-liddy-sb-idUSTRE54L0H720090522 "Liddy, AIG's embattled steward, has no regrets"]. Reuters.

{{American International Group}}

{{Authority control}}

{{DEFAULTSORT:Liddy, Edward M.}}

Category:1946 births

Category:Boeing people

Category:Directors of 3M

Category:Goldman Sachs people

Category:Living people

Category:Catholic University of America alumni

Category:George Washington University School of Business alumni

Category:American chairpersons of corporations

Category:American chief executives of financial services companies

Category:American chief operating officers

Category:American International Group people