Storms steps down as Marsh’s CEO

Marsh & McLennan Cos. Inc.’s stock dropped further after Brian M. Storms stepped down as CEO of Marsh Inc., MMC’s insurance brokerage subsidiary, on Friday.
The New York-based adviser’s stock closed Friday at $21.18, down 21% since May and 14.6% for the year. Its stock fell another 3% in pre-market trading Monday, published reports said.
Mr. Storms was immediately replaced by Michael G. Cherkasky, president and chief executive officer of MMC, who will serve as acting CEO of Marsh Inc. until the company finds a permanent replacement.
The move comes after a consistent decline — 59% in the past seven years — in Marsh’s stock, and after posting low second-quarter earnings in August.
Published reports last month said the company acknowledged weakness at its brokerage, which earns money by finding insurance for commercial clients.
Morgan Stanley analyst William Wilt and Citigroup analyst Keith F. Walsh have each downgraded Marsh’s stock.
Mr. Walsh cut his rating to “Hold” from “Buy” and reduced his price target to $30 from $35, noting that Marsh’s stock has been unimpressive since Mr. Storms joined the company in 2004.
Mr. Wilt upgraded Aon Corp.’s shares, bolstering Marsh’s closest rival.
Aon, based in Chicago, posted $240 million second quarter earnings, and its stock has doubled as Marsh’s has declined, according to published reports.