Marsh & McLennan CEO Ousted

Michael G. Cherkasky is out as CEO of Marsh & McLennan Cos. Inc. and the search is on for his replacement, the company’s board of directors announced this morning.

The board “determined that a change in leadership will best enable MMC to move forward and enhance shareholder value,” the company said in a written statement. MMC also said it would explore “strategies to enhance shareholder value” which included “reviewing its mix of businesses.”

The move comes after MMC’s financial performance fell short of expectations, the board said. Last month, MMC posted a 40 percent drop in profits, excluding the $3.9 billion sale of its Putnam Investments unit.

Cherkasky, who has served as president and CEO of the New York-based company since Oct. 2004, will continue in the top job until his replacement is identified. The outgoing CEO took over the top job at MMC in the midst of a bid-rigging scandal, for which it paid $800 million in fines and restitution.

MMC is the parent company of Marsh, Guy Carpenter, Kroll and several other professional services firms, and has more than 55,000 employees worldwide.