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AIG Hires Schultz, Army's Bleimeister in Revamp of `Suboptimal' HR Office

American International Group Inc. hired former U.S. Army Lt. Col. Robert Bleimeister and Mitchell Schultz, previously of Invesco Ltd., to improve a human resources department the insurer described as “sub-optimal.”

Bleimeister, who joined AIG last month, was named global head of human resources operations, the New York-based insurer said in a letter to staff dated June 2. He was most recently director of business strategy for the Army, according to the memo. Schultz, a former head of human resources at Invesco, joined June 1 and will oversee compensation and benefits.

AIG, the world’s largest insurer before soured housing bets forced it into a 2008 bailout, made the hires as part of an overhaul of its human resources unit and pay practices, according to the memo from Jeffrey Hurd, who took charge of the operations in February. AIG, which was built through dozens of acquisitions, has operations in more than 100 nations and is selling units to repay its $182.3 billion government rescue.

“Our structure fosters duplication of effort, high costs, sub-optimal service and a limited ability to play a strategic role in support of AIG business goals,” Hurd said in the letter. “What is today a largely decentralized and primarily administrative function must become a global, integrated organization that is a strategic asset.”

AIG said previously this year that it is consolidating incentive systems under a new ranking program that grades employees on a five-point scale. The insurer had 96,000 employees at the end of 2009. Joe Norton, a spokesman for the insurer, didn’t immediately return a call seeking comment.

IBM, Army

Bleimeister advised the Army on its finance, information- technology and human resources functions, according to the memo. He was an officer in the Army from 1979 to 1996, AIG said, and has also been an executive at PricewaterhouseCoopers LLP and International Business Machines Corp.

The insurer’s former general counsel and vice chairman in charge of human resources, Anastasia Kelly, resigned in December after her salary was cut by the Obama administration’s special paymaster.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

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