Three senior staff to go in broker restructure
Three senior employees are being let go at Marsh as the broker continues to restructure its business in a bid to reduce costs.
Head of global placements Stephen Matanle, head of multinational business Julian Wellers, and head of distribution in the UK Toby Foster are to leave the company. Matanle is also chair of Lloyd’s Market Reform Group.
Well-placed sources said the changes were part of a reorganisation led by new global chief executive Dan Glaser.
The company has said it needs to boost margins to 20% by 2010.
Marsh has been struggling since the 2004 investigation and subsequent $850m reforms by New York attorney general Eliot Spitzer, following concerns over commissions and broker transparency.
One senior source was surprised that the management changes had not happened sooner.
He said: “They kind of padded around for two years with no hard strategic structural changes being made. I’m curious to see who they will get to fill those positions, because it will be a massive job.”
Marsh refused to comment on the departures.
In December, Michael Cherkasky, global chief executive of Marsh’s parent company MMC, was sacked.
He was replaced by former Ace chief executive Brian Duperreault.
This was followed by several other executive departures from the company’s global office.
In January, Marsh consolidated its global business from four geographical divisions –Americas, Europe, Middle East and Africa, and Asia Pacific – to two, US/Canada and international.
The UK business also selected Capita, in a £200m 10-year deal, to outsource its 650 back office staff, which, according to transformation director Ian Clarke, would be a precursor to ‘front of house’ restructuring,
“We are looking to transform the UK business front to back,” Clarke said.