Marsh McLennan (NYSE:MMC) has announced that J. Michael Bischoff, is now CFO of the insurance brokerage effective Sep 4. CEO Brian Duperreault said in a press release . “His extensive experience and demonstrated ability to create shareholder value are important assets,”. One would expect that in executives of publicly traded companies.
GMI Ratings governance awarded an AGR score of 27 as of August, indicating that it has higher accounting and governance risk than 73% of companies. In 2011 they eliminated hundreds of positions and entered into a stock buy back which of course is designed to make EPS look much better.
MMC has been on an acquisitions kick and has racked up lots of estimated value but not tangible values. This opens Pandora’s box to potential write downs and write-offs which will destroy shareholder wealth not create it.
Iceberg straight ahead.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter @financialskepti.