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Marsh & McLennan

(MMC) - Get Marsh & McLennan Companies, Inc. Report


The nation's biggest insurance broker said five of its directors resigned Thursday. The departing directors are Mathis Cabiallavetta, PeterCoster, Charles A. Davis, Ray J. Groves and A.J.C. Smith.

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The resignations come on the heels of the ouster of Jeffery Greenberg, the company's former chief executive, and several employees who've been implicated in an industrywide kickback and bid-rigging scheme.

Robert Erburu, lead director of Marsh's board, said: "This step is in keeping with the company's commitment to adhering to corporate governance best practices. The board appreciates the services of these executives."

The company's board now consists of Michael G. Cherkasky, the company's president and chief executive officer, and 10 outside members.

Last month New York Attorney General Eliot Spitzer filed civil fraud charges against Marsh, accusing of it engineering a scheme to increase fees for itself by steering contracts to favored insurers. Spitzer's office also has secured guilty pleas from five low-level insurance executives who allegedly took part in Marsh's bid-rigging scheme.

The investigation has expanded since then to touch all corners of the insurance business, with many firms receiving subpoenas from Spitzer and other state regulators.