Legg Mason takes $4 million charge on Fetting departure
By Douglas Appell | September 20, 2012 1:38 pm
Legg Mason (LM) Inc. (LM) expects to incur roughly $4 million in charges for the current quarter as a result of the separation agreement the company reached with Mark R. Fetting, its CEO, president and chairman, according to a filing with the SEC on Wednesday.
On Sept. 11, Legg Mason announced that Mr. Fetting would step down effective Oct. 1, but remain as a consultant to the company through the end of the year.
According to Wednesday’s filing, Mr. Fetting will receive $2 million, payable in installments over a 15-month period, provided he doesn’t work directly for a financial services company that competes with Legg Mason or solicit the company’s clients on behalf of a competitor for a 12-month period.
In addition, 111,548 unvested Legg Mason shares held by Mr. Fetting “will remain outstanding and eligible to vest,” according to the filing.
Mr. Fetting couldn’t immediately be reached for comment about his plans.