Search underway for new chief executive
Marsh & McLennan Companies (MMC), the parent of global broker Marsh is to begin a search for a chief executive to replace Michael Cherkasky.
The Board of Directors said that a change in leadership would “best enable MMC to move forward and enhance shareholder value”.
Cherkasky, who has been president and chief executive since 2004, will continue in the role while the search is conducted.
Stephen Hardis, non-executive chairman of MMC said: "MMC's financial performance in 2007 has fallen far short of our expectations. The Board has taken this performance into account, and listened to concerns raised by some of the company's largest shareholders in recent quarters, in making this change.
“The Board will continue to actively oversee MMC's portfolio of businesses and evaluate strategies to enhance shareholder value, including optimizing the company's capital structure, reviewing its mix of businesses and improving operating performance, particularly at Marsh. To that end, we hired Dan Glaser as Chairman and Chief Executive Officer of Marsh to significantly improve Marsh's profitability. The Board believes that the full recovery of Marsh is essential to maximizing shareholder value in the most prudent and sustainable manner."
Hardis continued: "MMC is a venerable institution that might not be here today were it not for Mike Cherkasky. His leadership and crisis management skills in the wake of the New York Attorney General's action in 2004 enabled MMC to weather a perfect storm and positioned the company for future growth. We all owe Mike an enormous debt of gratitude for his invaluable contribution."
"It has been an honor and a privilege for me to lead MMC through difficult times and position it for a successful future," said Cherkasky. "This company has as fine a collection of people as I have ever worked with and I am proud of what we have achieved in many areas. I would like to thank all of my colleagues for a tremendous team effort over the past three years and look forward to seeing MMC succeed in the future."
