The future of Marsh--already in doubt with the appointment of anew CEO--is even murkier with the announcement just beforeChristmas that a change in leadership was ahead at the helm of itstroubled parent company as well.

Michael G. Cherkasky, Marsh & McLennan Companies' embattledchief executive officer, will be leaving the company after hisreplacement is found, the firm announced on Dec. 21.

MMC's board of directors has initiated a search to replace Mr.Cherkasky. In a statement, MMC said the board "has determined achange in leadership will best enable MMC to move forward andenhance shareholder value."

Mr. Cherkasky won't be leaving empty-handed, however, as he isentitled to $19 million upon termination, according to a filingwith the U.S. Securities and Exchange Commission.

"MMC's financial performance in 2007 has fallen far short of ourexpectations," said Stephen R. Hardis, nonexecutive chairman of theboard. "The board has taken this performance into account andlistened to concerns raised by some of the company's largestshareholders in recent quarters in making this change."

He added that "the board believes the full recovery of Marsh isessential to maximizing shareholder value in the most prudent andsustainable manner."

Mr. Cherkasky replaced Jeffery W. Greenberg in October 2004after MMC was sued by New York's attorney general at the time (nowthe governor), Eliot Spitzer. In the suit, the company was accusedof rigging bids and steering insurance contracts to certaincarriers in exchange for kickbacks in the form of volume-basedcontingent commissions.

Mr. Cherkasky, who had a personal relationship with Mr. Spitzerdating back to the days when the two were prosecutors in theManhattan District Attorneys Office, was the CEO of Kroll, the riskmanagement subsidiary of MMC, at the time of his appointment.

After his appointment, Mr. Cherkasky settled the suit with Mr.Spitzer with a payment to aggrieved clients of more than $800million. The company also agreed to give up contingent commissions,which amounted to more than $800 million annually at the time. MMChas yet to recover those revenues and Marsh has performed poorly asit continues to restructure.

As part of that restructuring, MMC hired Dan Glaser as chairmanand CEO of Marsh a little over a month ago, replacing Brian Storms,who left last September. During a recent analyst conference call,Mr. Cherkasky took responsibility for appointing Mr. Storms and forthe failure to turn around the ailing broker's fortunes.

However, in his comments, Mr. Hardis commended Mr. Cherkasky forhis role in bringing MMC through a difficult period.

"MMC is a venerable institution that might not be here todaywere it not for Mike Cherkasky," according to Mr. Hardis. "Hisleadership and crisis management skills in the wake of the New Yorkattorney general's action in 2004 enabled MMC to weather a perfectstorm and positioned the company for future growth. We all owe Mikean enormous debt of gratitude for his invaluable contribution."

In a statement, Mr. Cherkasky said that "it has been an honorand a privilege for me to lead MMC through difficult times andposition it for a successful future. This company has as fine acollection of people as I have ever worked with, and I am proud ofwhat we have achieved in many areas."

In reaction to the news of Mr. Cherkasky's planned departure,Alan Karaoglan, with Bank of America, called the move "a positivestep forward."

Creating further uncertainty is Mr. Karaoglan's comment that a"potential sale of the company is now possible" to unlockshareholder value, either via a sale of MMC in its entirety, or aspin-off of its operating units, such as Marsh.

David Small, an analyst with Bear Stearns, headlining hiscommentary, "Christmas Comes Early For MMC Shareholders," saidinvestors have called for Mr. Cherkasky's removal for months.

He said the news may be an indication the company will report apoor fourth quarter, and predicted it will be at least two morequarters before any improvement is seen.

In addition, Mr. Small suggested that MMC was late in itsactions. "Mr. Cherkasky should have been let go when [Marsh CEOBrian] Storms was let go, as it was clear then that his plan wasnot working," he wrote.

He went on to say that "to allow Mr. Cherkasky to choose a newCEO of Marsh was a mistake, in our view, as it should have been oneof the most important decisions of a new MMC CEO. The decision toallow Mr. Cherkasky to choose a new CEO of Marsh when there werequestions about Mr. Cherkasky's overall performance is surprisinggiven his poor choices in terms of management throughout his tenureat the company."

Mr. Small added that "we wonder if in order to find thehigh-caliber CEO that is necessary to fix this organization,"whether MMC's board "will have to allow the [new] CEO tohand-select a new leader for the overall Marsh business. Thissituation should lead to continued uncertainty within theorganization..."