Marsh & McLennan Announces Search for New CEO
Michael G. Cherkasky to Step Down
MMC
Marsh & McLennan Companies, Inc. (NYSE: MMC) announced today that its Board of
Directors has initiated a search for a Chief Executive Officer to replace
Michael G. Cherkasky, who has served as President and Chief Executive Officer of
the company since October 2004.
The Board of Directors has determined that a change in leadership will best
enable MMC to move forward and enhance shareholder value. Mr. Cherkasky will
continue to serve as MMC's CEO while the search is conducted.
Stephen R. Hardis, Non-Executive Chairman of the Board, 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.'
Mr. 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 Mr. 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.'
MMC is a global professional services firm providing advice and solutions in the
areas of risk, strategy and human capital. It is the parent company of a number
of the world's leading risk experts and specialty consultants, including Marsh,
the insurance broker and risk advisor; Guy Carpenter, the risk and reinsurance
specialist; Kroll, the risk consulting firm; Mercer, the provider of HR and
related financial advice and services; and Oliver Wyman, the management
consultancy. With more than 55,000 employees worldwide and annual revenue of $11
billion, MMC provides analysis, advice and transactional capabilities to clients
in more than 100 countries. Its stock (ticker symbol: MMC) is listed on the New
York, Chicago, and London stock exchanges. MMC's website address is www.mmc.com.
This press release contains 'forward-looking statements,' as defined in the
Private Securities Litigation Reform Act of 1995. These statements, which
express management's current views concerning future events or results, use
words like 'anticipate,' 'assume,' 'believe,' 'continue,' 'estimate,' 'expect,'
'intend,' 'plan,' 'project' and similar terms, and future or conditional tense
verbs like 'could,' 'may,' 'might,' 'should,' 'will' and 'would.' For example,
we may use forward-looking statements when addressing topics such as: future
actions by regulators; the outcome of contingencies; changes in our business
strategies and methods of generating revenue; the development and performance of
our services and products; market and industry conditions, including competitive
and pricing trends; changes in the composition or level of MMC's revenues; our
cost structure and the outcome of restructuring and other cost-saving
initiatives; share repurchase programs; the expected impact of acquisitions and
dispositions; and MMC's cash flow and liquidity.
Forward-looking statements are subject to inherent risks and uncertainties. MMC
and its subsidiaries operate in a dynamic business environment in which new
risks may emerge frequently. Accordingly, MMC cautions readers not to place
undue reliance on its forward-looking statements, which speak only as of the
dates on which they are made. MMC undertakes no obligation to update or revise
any forward-looking statement to reflect events or circumstances arising after
the date on which it is made. Further information concerning MMC and its
businesses, including information about factors that could materially affect our
results of operations and financial condition, is contained in MMC's filings
with the Securities and Exchange Commission, including the 'Risk Factors'
section of MMC's annual report on Form 10-K for the year ended December 31,
2006.
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MMC
Media:
Christine Walton, 212-345-0675
christine.walton@mmc.com
or
Investors:
Mike Bischoff, 212-345-5470
jmichael.bischoff@mmc.com
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