Former Allstate Chairman and CEO Edward M. Liddy put his retirement on hold in late 2008 to help oversee the restructuring of AIG. Now that he’s working for the competition, Allstate wants Liddy’s retirement perks returned to good hands.
Allstate’s board recently decided that Liddy is no longer allowed to use the company’s 1953 Allstate Coupe, a limited-edition car built by Sears Roebuck & Co. in the 1950s. He must also stop using Allstate’s membership at the Glen Club country club in Glenview, Ill., and is no longer allowed access to Allstate’s owned and leased vehicles, according to a letter from Allstate filed with the Securities and Exchange Commission.
“The board agrees that this was a proper exercise of (current Allstate CEO Tom Wilson’s) authority and that his decision was an excellent one for both Allstate and the country in light of the financial crisis,” the letter stated.
Allstate did, however, agree to pay for Liddy’s Sept. 16 flight to New Jersey on the corporate jet after he was summoned by then-Treasury Secretary Henry Paulson to discuss the financial crisis and AIG’s bailout. For tax purposes, the letter recommended reporting the flight’s cost as income.
