Shareholders and employees ought to hope Michael G. Cherkasky, the newly named chairman and chief executive officer of Marsh & McLennan Cos., can pull off a move to restore the company's credibility that is as skillful as the one he engineered for shareholders of Kroll Inc., in that company's acquisition by MMC.
Mr. Cherkasky, as CEO of Kroll, "made one smart move this year: he got MMC to revise its original 50% stock-50% cash bid for Kroll to an all-cash offer," noted a report by Gimme Credit, an independent corporate bond research firm.
Following the insurance company scandal, the change to a $1.9 billion all-cash deal certainly looks prophetic and certainly beneficial for Kroll shareholders.
After the acquisition, Mr. Cherkasky was named CEO of Marsh Inc., MMC's insurance-brokerage subsidiary. Last week, he replaced Jeffrey W. Greenberg, who resigned under pressure as MMC's chairman and CEO.
With Mr. Cherkasky at the MMC helm now, shareholders and employees — many of whom are also shareholders via MMC employee benefit plans — should hope he keeps their interests a priority.