Legg’s Fetting tapped as chairman of board

Legg Mason Inc. has tapped its chief executive, Mark Fetting, to serve as chairman of the Baltimore-based money manager's board of directors.

Legg Mason Inc. has tapped its chief executive, Mark Fetting, to serve as chairman of the Baltimore-based money manager’s board of directors.

He will remain in his capacity as CEO.

Mr. Fetting succeeds Legg Mason’s longtime chairman and chief executive, Raymond A. “Chip” Mason, who will remain a senior adviser to the company.

In January, Legg Mason appointed Mr. Fetting as CEO with Mr. Mason remaining to serve in a non-executive capacity as chairman of the board.

“Mark’s leadership during a very difficult period for the asset management industry has earned him the respect of everyone on the board,” W. Allen Reed, Legg Mason’s lead independent director, said in a statement.

The global money manager has had a tough 2008 due to the global credit crunch. Last week, it announced it would be cutting about 8% of its corporate work force (InvestmentNews, Dec. 5).

For its fiscal second quarter, Legg Mason reported a net loss of $103.8 million, or $1.23 per diluted share, compared with a profit of $177.5 million in the year-ago period.

Legg Mason had $842 billion in assets under management on Sept. 30, a 17% drop from a year earlier.