NU Online News Service, Sept. 21, 2:34 p.m. EDT
Marsh & McLennan Companies said today that it has extended MMC President and Chief Executive Officer Brian Duperreault's $1 million a year base contract and bonus rate unchanged for an additional three years.
Mr. Duperreault was named chief executive officer of the New York-based services company on Jan. 30, 2008. MMC is the parent company of insurance broker Marsh and reinsurance broker Guy Carpenter.
"I am extremely pleased to announce this positive development," said Stephen R. Hardis, MMC's chairman, in a statement. "Since arriving at MMC, Brian Duperreault has done a tremendous job–not only in stabilizing the Marsh & McLennan franchise but in leading the company through one of the worst economic periods in the past century."
Mr. Hardis said Mr. Duperreault had proven his ability to produce results in a very short timeframe, and "this contract extension [to 2014] will allow Brian to bring the initiatives he has already begun through to completion."
Under his original contract, Mr. Duperreault's employment was to expire on Jan. 29, 2011.
Besides keeping Mr. Duperreault on longer, MMC said the new agreement intends to give an orderly transition to a successor when his contract ends, or if a successor is identified prior to the end of his employment.
"I am grateful to the board for their confidence in me," said Mr. Duperreault. "I, in turn, have the utmost confidence in the hardworking people of Marsh & McLennan; they are the foundation on which we are rebuilding this great company."
According to a filing with the Securities and Exchange Commission, Mr. Duperreault will still receive a base salary of $1 million and an annual target bonus opportunity equal to 225 percent of this base salary to be determined by the compensation committee.
He was also granted stock options and there is a non-compete clause in the contract that bars him from joining a competitor or soliciting business for 24 months following termination of his employment.
Prior to joining MMC, Mr. Duperreault was CEO of Bermuda-based insurer ACE Ltd. from 1994 to 2004, and served as its chairman from 2004 to 2007.
He was also with American International Group for more than 20 years before joining ACE, rising to executive vice president of AIG Foreign General Insurance and chairman and chief executive of AIG's American International Underwriters.
Mr. Duperreault replaced embattled chief executive Michael Cherkasky in 2008, who is credited with restoring MMC's credibility after it was caught up in a scandal in 2005 over allegations of steering certain insurance contracts to preferred insurers in exchange for lucrative contingent commissions.
However, Mr. Cherkasky could not revive MMC's earnings, which led to his ouster.
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