Marsh & McLennan Companies Inc. will pay former president and chief executive officer Michael G. Cherkasky $7.15 million as part of its separation agreement with him.
In a Securities and Exchange Commission filing last week, MMC said it came to agreement with Mr. Cherkasky on Feb. 15 to pay him a lump sum as part of his employment agreement. He received no bonus for 2007, and the figure was arrived at based on his salary and bonus for 2005 and 2006.
He also owns 421,878 shares of stock in MMC. He has an option to purchase more than 820,000 shares.
As part of his agreement he will serve as a consultant until March 31 of the year and receive a monthly fee of $333,333 for the months of January, February and March. The fee will be reduced by the amount of salary he received from Jan. 1 to his separation date on Jan. 29.
He has an off-site office for a year, and access to six months of executive outplacement services.
There is also a 24-month noncompete clause.
Mr. Cherkasky was replaced by Brian Duperreault, the former chairman and CEO of ACE Ltd.
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