Summary
Marsh & McLennan Companies, Inc. (MMC) filed an 8-K on February 22, 2008, to report on the separation of its former president and chief executive officer, Michael G. Cherkasky. The filing details the terms of the Separation and Release Agreement entered into on February 15, 2008, following Mr. Cherkasky's termination effective January 29, 2008. Key aspects for investors include the financial terms of the separation, which stipulate a lump-sum payment of $7,150,000 to Mr. Cherkasky. This payment is calculated as two times his combined base salary and average bonus for 2005-2006, as per his employment agreement, because his termination was not for cause. Additionally, all of Mr. Cherkasky's unvested equity awards, including restricted stock units and stock options, fully vested upon his separation. The filing also outlines certain ongoing benefits and a consulting arrangement for a transition period.
Key Highlights
- 1Michael G. Cherkasky, former President and CEO, separated from MMC on January 29, 2008.
- 2MMC entered into a Separation and Release Agreement with Mr. Cherkasky on February 15, 2008.
- 3Mr. Cherkasky will receive a lump-sum payment of $7,150,000, calculated as twice his base salary plus his average bonus for 2005-2006.
- 4No bonus was awarded to Mr. Cherkasky for fiscal year 2007.
- 5All of Mr. Cherkasky's unvested equity awards, including restricted stock units and stock options, vested fully upon his separation date.
- 6A portion of Mr. Cherkasky's stock options are subject to stock price performance contingencies for exercisability.
- 7MMC will provide Mr. Cherkasky with one year of administrative support, executive outplacement services, and continued participation in certain benefit programs.