Updated from Nov. 8
The turmoil continues at
Marsh & McLennan
, the scandal-tainted insurance brokerage.
The company announced late Monday that it fired two executives at its Marsh brokerage subsidiary. The departing executives are Roger Egan, president and chief operating officer, and Christopher Treanor, chairman and chief executive of the firm's global placement division.
A report Tuesday in the
says the company is about to announce the elimination of thousands of more jobs, mostly in its New York headquarters. The newspaper said the company was adjusting to a new revenue reality in which it no longer accepts so-called contingent commissions for steering business to preferred carriers.
The moves come as Marsh continues to deal with the fallout from the insurance industry kickback and bid-rigging scandal. Last month, New York Attorney General Eliot Spitzer filed civil fraud charges against Marsh & McLennan and effectively forced the resignation of Jeffery Greenberg, the chief executive.
Within days of the lawsuit's filing, Greenberg resigned. Replacing him was Michael Cherkasky, a former colleague of Spitzer's and a top executive at Kroll, the corporate investigative firm that Marsh acquired this summer.
Cherkasky and the Marsh board have been scrambling the past few weeks to salvage the company's reputation and reach a settlement with Spitzer. The company fired five other executives who've been implicated in the mushrooming scandal.
"These management decisions were difficult and were not based on any suggestion of culpability,'' said Cherkasky. "However, at the end of the day, Mr. Egan and Mr. Treanor were accountable for the areas of the business that have been the focus of (the) investigations.''
In a separate move, the company also announced that William Rosoff has stepped down as senior vice president and general counsel of the firm. It's been reported that Rosoff had a number of run-ins with Spitzer's staff in the days leading up to the filing of the lawsuit.