Marsh & McLennan Companies Inc. said its retiring chief financial officer, Sandra S. Wijnberg, will be replaced by the restructuring officer of a bankrupt utility company, M. Michele Burns.
Ms. Burns will join the company as executive vice president on March 1 and assume the position of CFO no later than March 31, MMC said.
One analyst said the selection was surprising given Ms. Burns' lack of insurance background.
Ms. Wijnberg announced her intention to retire in August. MMC said Ms. Wijnberg will work closely with Ms. Burns to ensure a smooth transition. Ms. Burns will report to Michael G. Cherkasky, president and chief executive officer of MMC.
New York-based MMC, the parent company of Marsh insurance brokerage, said Ms. Burns, 47, has been executive vice president, chief financial officer and chief restructuring officer of Mirant, a producer and distributor of electricity, based in Atlanta, since 2004.
According to its Web site, Mirant entered Chapter 11 bankruptcy protection in July 2003 and plans to emerge from bankruptcy in the first week of January 2006.
Prior to joining Mirant, Ms. Burns spent five years at Delta Air Lines Inc., where she served as executive vice president and chief financial officer. Before joining Delta, she was a senior tax partner at Arthur Andersen LLP.
Ms. Burns serves as a member of the board of directors of Wal-Mart Stores Inc., Cisco Systems Inc. and the Ivan Allen Company. She is also treasurer and a founding member of the board of directors of the Elton John AIDS Foundation.
"We are very pleased to welcome Michele to MMC's senior management team," said Mr. Cherkasky in a statement. "Michele has distinguished herself through her financial leadership, management track record and impressive professional accomplishments. Her experience will be invaluable as MMC implements its 'one company' strategy of becoming the world's leading global advice and solutions firm."
Commenting on the appointment in an analyst's note, David Small, an analyst at Bear Stearns, said the appointment comes as a surprise because she lacks experience in either the insurance or financial services sector. It is also "surprising" that there is currently little insurance industry experience at the top ranks of the company.
Bear Stearns said it is maintaining its outperform rating on the stock and its $35 price target as the company continues its turnaround into and throughout 2006.
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