Novartis AG, the company formed from the merger of Ciba-Geigy Corp. and Sandoz Corp., named William J. McHugh Jr. to head the new Novartis U.S. employee benefit funds.
The funds will consist of nearly $3 billion in combined defined benefit, 401(k) and other employee benefit assets of the two merging companies.
Mr. McHugh, who now is vice president-trust at Ciba-Geigy, Ardsley, N.Y., will report to Claude Dulex, Novartis chief financial officer. His title hasn't been announced yet, but he may become treasurer. Mr. McHugh couldn't be reached for comment about the changes.
Robert Hunkeler, now associate director-funds management and financing for Sandoz, New York, will head cash management, foreign exchange and corporate finance for Novartis. His title also hasn't been decided.
Mr. Hunkeler, who used to work under Mr. McHugh at Ciba-Geigy, said he will report to Mr. McHugh at Novartis. He declined to discuss any changes, noting key decisions are still under study.
A timetable for the merger of the plans hasn't been decided.
Ciba-Geigy's plans are twice as big as Sandoz's.
Ciba-Geigy has $990 million in defined benefit assets and $989 million in 401(k) assets.
Sandoz has $459 million in defined benefit funds and $482 million in 401(k) funds. In addition, Sandoz has a $24 million voluntary employee beneficiary association.
The two companies have bigger pension plans in their native Switzerland. Ciba-Geigy has a 9 million Swiss franc ($7.5 billion) fund and Sandoz has a 4 billion franc ($3.4 billion) fund.
