21st Century Board Member Seeks CEO Post

A major shareholder and board member of 21st Century Insurance Group is seeking to become chief executive of the Woodland Hills-based insurer whose CEO announced his resignation earlier this week. The offer came from Gregory Shepard, chairman and president of American Union Insurance Co., who owns about 6% of 21st Century. He said he would take a salary of just $1 a year and would give up his current job if selected as William Mellick’s successor. Shepard submitted a shareholders proposal to be considered at the company’s annual meeting in May. Mellick said he was leaving the company to pursue other opportunities, but analysts speculated that his departure was due to increasing pressure from 21st Century’s biggest shareholder, American International Group. There was no immediate response from AIG to Shepard’s offer.