Who is the new CEO of Marsh & McLennan Companies?

Brian Duperreault has been appointed as the new President and Chief Executive Officer of Marsh & McLennan Companies (MMC), effective January 30, 2008. He also joins the company's Board of Directors.

What is Brian Duperreault's compensation package?

Mr. Duperreault's compensation includes an annual base salary of at least $1.0 million, eligibility for an annual bonus up to 225% of his base salary (with a guaranteed minimum of $2.25 million for 2008), and substantial equity awards including stock options and restricted stock units. The vesting of a significant portion of these equity awards is performance-based, linked to stock price appreciation.

What are the key terms of Mr. Duperreault's employment agreement regarding equity vesting?

His equity awards include initial options for 1.2 million shares and 300,000 restricted stock units. One-third of the options vest over two years, while the remaining two-thirds vest based on achieving specific stock price targets (20% and 40% increases over the exercise price). The restricted stock units generally vest on the third anniversary, with a portion subject to performance conditions, and a make-whole RSU award vesting over two years.

What happens to Mr. Duperreault's equity awards in case of a change in control?

In the event of a change in control, a portion of his unvested options and RSUs will vest immediately, unless they are assumed or replaced by equivalent awards. Further vesting of performance-based equity is contingent on the transaction price meeting specific stock price targets as defined in the agreement.

MRSH/MMC 8-K: Leadership Changes

Summary

Marsh & McLennan Companies, Inc. (MMC) announced a significant leadership change via this Form 8-K, reporting the appointment of Brian Duperreault as President and Chief Executive Officer, effective immediately as of January 30, 2008. Mr. Duperreault, a seasoned executive with extensive experience at ACE Limited and AIG, also joins MMC's Board of Directors. This appointment signals a strategic shift for the company, with investors likely scrutinizing the new CEO's vision and execution capabilities. The filing also details Mr. Duperreault's employment agreement, outlining a competitive compensation package that includes a substantial base salary, annual bonus potential, and significant equity grants tied to performance and stock price appreciation. The terms of his compensation, particularly the performance-based vesting of equity, are designed to align his interests with those of shareholders and incentivize long-term value creation.

Key Highlights

1Brian Duperreault appointed as President and Chief Executive Officer of Marsh & McLennan Companies (MMC) effective January 30, 2008.
2Mr. Duperreault, age 60, brings extensive experience from leadership roles at ACE Limited and AIG.
3He has also been elected to MMC's Board of Directors.
4Mr. Duperreault's employment agreement includes an annual base salary of at least $1.0 million.
5Eligible for an annual bonus up to 225% of base salary, with a guaranteed minimum bonus of $2.25 million for 2008.
6Received significant initial equity grants: options for 1.2 million shares and 300,000 restricted stock units (RSUs), with vesting tied to time and stock performance targets.
7The employment agreement includes non-competition and non-solicitation clauses and outlines terms for termination and change in control scenarios.

MARSH & MCLENNAN COMPANIES, INC. 8-K Report, Executive Changes (Feb 4, 2008)

Summary

Key Highlights

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