Marsh & McLennan Companies Inc. said today that its board of directors has decided that board members will serve one-year terms and stand for re-election each year.

The decision replaces the current structure where board members serve up to three years before re-election. Current board members will stand for annual elections as their existing three-year terms expire.

MMC, a New York-based services company that is parent company of insurance broker Marsh and reinsurance broker Guy Carpenter, said it would include in its 2008 proxy statement a company-proposed charter amendment affecting the change.

Shareholders will be asked to approve the charter amendment at MMC's annual meeting in May.

In a statement Stephen R. Hardis, chairman of MMC's board of directors, said the move “is the latest step in the board's ongoing effort to implement best corporate governance practices at MMC.”

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