Severance to Include $7.15M for Former Marsh Exec

Marsh & McLennan Cos's Ex-CEO Michael Cherkasky will receive as part of his severance package $7.15 million. The former executive had been brought in to broker a costly legal settlement in 2005, and was later forced out earlier this year.

Published on February 25, 2008

According to a filing with the U.S. Securities and Exchange Commission on Friday, MMC, one of the world's largest insurance brokers, said it would pay ex-CEO Cherkasky a lump sum, and agreed to allow stock and option awards vest immediately.

The former prosecutor -- who was head of MMC corporate unit Kroll Inc before being tapped for the top spot in 2005 -- was brought in after ex-CEO Jeffrey Greenberg was ousted amid allegations the insurance brokerage accepted kickback payments in exchange for placing business with certain insurers.

While Cherkasky was praised for helping to lift MMC out of its legal troubles, he eventually came under investor fire for the company's poor financial performance.