Marsh & McLennan names brokerage CEO

Marsh & McLennan Cos. today named a former American International Group executive as the new chief executive of its embattled insurance brokerage unit, Marsh Inc., according to Crain's New York Business. Daniel Glaser, currently managing director of AIG’s European arm, will start Dec. 10, filling the position vacated in August by Brain Storms. Insiders speculate that Mr. Storms was removed from his post after repeated unsuccessful attempts to revive the struggling unit. MMC CEO Michael Cherkasky had been filling in on an interim basis. Marsh declined to provide Mr. Glaser’s salary, though Mr. Storms made $3.5 million in 2006 total cash compensation. Mr. Glaser, who will relocate to Manhattan from London, is no stranger to the company. He spent a decade working as an insurance broker at Marsh before jumping to Willis Risk Solutions in 1992. He joined AIG in 2002. MMC has been trying in recent years to recover from a pricey 2005 agreement, which settled charges that the firm steered clients to insurers that paid it hidden commissions. In November 2004, the company laid off 3,000 employees, or 5% of its workforce, in an effort to cut costs. Shares of MMC were up 1.5% at $25.50 in afternoon trading. Shares have slumped 45% since the bid rigging charges were first announced in September 2004.