The chief executive at Marsh & McLennan Companies is not the highest paid executive with the firm at the moment, according to a securities filing, but that will change after the sale of Putnam.
Charles E. Haldeman, president and chief executive officer of Putnam Investments, the financial services arm of New York-based MMC, made $13.8 million in total compensation. Michael G. Cherkasky, MMC's president and CEO of the professional services firm, took home $8.65 million in 2006.
Mr. Cherkasky, according to a filing with the Securities and Exchange Commission, made $100,000 more in base salary than Mr. Haldeman, but he outpaced Mr. Cherkasky in short-term incentive award and stock options.
Mr. Haldeman received a total of $12.9 million in incentive award and stock options, while Mr. Cherkasky received $7.65 million. Mr. Haldeman's $6.45 million in stock was in Putnam-restricted shares.
The short-term award, according to the filing, is a formula based on the performance of the company.
Brian M. Storms, chairman and CEO of insurance broker Marsh, a subsidiary of MMC, made $7 million in 2006 with a base salary of $1 million.
Mr. Haldeman will not remain the highest paid executive at MMC in 2007. In February, New York-based MMC announced the sale of Putnam to Great-West Lifeco Inc., a Canadian financial services holding company, for $3.9 billion. The deal is expected to be completed in the middle of this year.
The SEC filing also showed that should MMC decide to terminate Mr. Cherkasky's employment with the company, it would have to pay him $26.7 million if the company changes hands. If his employment is terminated under current management control he would receive $19 million.
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