MMC Names Erburu Chairman

NU Online News Service, March 17, 3:48 p.m. EST?Marsh & McLennan Companies said Robert F. Erburu has been named non-executive chairman of the board, filling a vacancy created when Jeffrey Greenberg was forced to resign from the firm.[@@]

Mr. Erburu has been lead director since Oct. 25, 2004, when Mr. Greenberg, who was also chief executive officer, stepped down from his post after the brokerage was sued by New York Attorney General Eliot Spitzer for price-fixing and making secret commission arrangements to steer business to insurers.

Mr. Erburu has been a member of the MMC board since 1996. He was chairman of The Times Mirror Company from 1986 until his retirement in 1996.

The board also declared a quarterly dividend of 17 cents per share on outstanding common stock, payable on May 13 to shareholders of record as of April 7.

The dividend payment follows an announcement earlier this month that it would cut the payments by 50 percent. The action came in the face of the loss of $840 million in contingent commissions the company is no longer accepting.

New York-based MMC stopped taking the commissions as part of a settlement with Mr. Spitzer’s office over his findings concerning contingent commissions collected by MMC’s subsidiary Marsh Inc.