Robert A. Georgine, the embattled chairman, president and CEO of union-controlled insurer ULLICO Inc., has resigned those posts and a newly elected board of directors picked laborers' union General President Terence M. OSullivan as the company's new chairman and CEO.
|Terence M. OSullivan|
The actions at a May 8 board meeting ended Georgine's long reign as head of Washington, D.C., -based ULLICO. Georgine, the former president of the AFL-CIO Building and Construction Trades Dept., has been under fire for more than a year for a ULLICO insider stock trading controversy that is still under federal investigation.
In a deal brokered by Sullivan and other labor leaders, Georgine agreed to not run as a company director. Membership on the board is a requirement for serving as chairman. Georgine originally vowed to continue as president and CEO but gave up those positions, too. OSullivan says that "an experienced insurance industry professional" will be hired to oversee day-to-day operations.
The deal also included a new slate of board members that includes only three of the previous directors.
OSullivan, who plans to continue as the laborers' president, said he and the new board "will not waste a minute" in focusing on corporate accountability at ULLICO. "Today we begin stabilizing ULLICO by halting the exodus of capital resources and human resources, by instituting the highest ethical and moral standards for company officers, and by addressing regulatory concerns," OSullivan said. He added that independent professionals will be hired to "assess the viability and potential of each of the companys business lines."
The new chairman also promised to work with regulatory agencies. The Securities and Exchange Commission and the Labor Dept. continue to investigate the stock transactions. On Capitol Hill, the House Education and the Workforce Committee announced it had subpoenaed Georgine to testify at a June 10 hearing.