Tuesday, December 25, 2007

Marsh CEO Out

Marsh & McLennan has ousted its CEO, Michael Cherkasky, as part of a review that could lead to a break-up of the scandal-laden group. Mr Cherkasky was brought into Marsh & McLennan in October 2004 after Eliot Spitzer accused the company of colluding with competitors. The group in 2005 reached a settlement with insurance regulators and Mr Spitzer. The settlement caused Marsh & McLennan's profitability to collapse. Its shares have fallen by a fifth this year, while those of rivals such as Aon have advanced.

Investors such as KJ Harrison & Partners have been urging Marsh & McLennan to spin off some of its consulting businesses, including its Mercer human resources consulting unit and Oliver Wyman management consulting unit, arguing that they do not fit well with insurance broking.

Source: The Australian

1 comment:

ALD said...

WSJ linked to this post.