It's hard to say which story was bigger news for me--that ace pitcher Johan Santana had been acquired by the New York Mets, or that Ace executive Brian Duperreault had been acquired by Marsh & McLennan Companies as its new president and CEO. Both moves will have a huge impact on their respective organizations.
Mr. Santana is the stud pitcher so desperately needed by the Mets to restore the dream of a possible world championship. Mr. Duperreault is the stud executive so desperately needed by the embattled MMC to restore the confidence of the firm's employees, risk management clients, insurers, stock analysts and investors.
Mr. Duperreault is a true superstar in this business. Not satisfied with his more than two decades of success at AIG, he moved to Bermuda as CEO at Ace (which, ironically, MMC helped found in 1985) from 1994 to 2004. He was bumped up to chairman in 2004, a post he held through last year. He resigned his post on the Ace board to take on his new challenges at MMC.
The hiring of Mr. Duperreault gives MMC instant credibility. He should be a magnet to draw top talent back to the firm. His appointment also appears to take MMC off the market, just after rumors started floating around again about a possible takeover by Willis.
Greg Dickerson, a director with Fitch Rating Services, told NU that he doubted Mr. Duperreault "would come out of retirement to dress-up MMC for sale." However, he added that "I wouldn’t rule out divestiture of certain business units once he has had a chance to set his strategic vision for the company.”
This hiring is also a very positive step because MMC went outside the organization. The troubled firm has been operating under a bunker mentality since allegations of bid-rigging and contingency fee abuse were raised by New York's attorney general at the time, Gov. Eliot Spitzer. MMC needs the fresh perspective and optimism Mr. Duperreault will bring to the table.
The only potential downside in my view is that Mr. Duperreault has spent his entire career on the company side of the business, never having worked in a brokerage firm. However, having dealt with brokers all along, depending on them to distribute his product, he certainly should have some strong opinions about how a major brokerage today can best serve its dual masters--risk managers and underwriters.
Mr. Duperreault definitely has his work cut out for him. But he has the management background, drive, intellect and entrepreneurial spirit to turn MMC around. I wish him luck.
Comments (1)
The same day I received my copy of the Feb. 11 edition of National Underwriter with Sam's "View From The Press Box," headlined, "Super Duper To The Rescue," A.M. Best announced outgoing MMC CEO Michael Cherasky's severance package. What's the word I'm searching for?
Forty years ago we were on college campuses and in the streets of Chicago railing against the military/industrial complex.
Not much has changed when a guy who has done a mediocre job at best gets a severance package worth something in the $18 million range.
I think the word is "unimaginable"? Or maybe "criminal"?
Posted by John D. Shedd | February 26, 2008 2:32 PM
Posted on February 26, 2008 14:32