Marsh to Lay Off 3,000 in Cost-Cutting Move

November 9, 2004

  • November 10, 2004 at 12:02 pm
    RRR says:
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    I echo the other comments.
    I bet the employees who profited from the MSAs, contigent commissions, and bid rigging are not going to be affected as they are considered “superstars”, it will be employees who had nothing to do with those items and exercise no control.
    Of course, those at the top bemoan the lack of loyalty, productivity, etc of the rank and file. Those same rank and file who are scared to death of this happening, who have seen their workload increase with no increase in pay, and who work harder and longer to get it done, and get then get a pink slip.

    Great place to work!

  • November 9, 2004 at 2:11 am
    Deb says:
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    Bet the vast majority of those getting the axe are decent hardworking individuals who have served this industry honestly and proudly. A terrible shame…

  • November 9, 2004 at 4:03 am
    Bob says:
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    I have to echo Deb’s comments. I find it very upseting that the individuals who make the poor decisions never have to pay the price. I am sure that Mr Greenberg had a exit package that will allow him to continue to pay his mortgage. The line staff who did not do anything wrong on the other hand never receive anything like this and organizations wonder why employee’s have no loyalty.

  • November 9, 2004 at 4:25 am
    Bruce says:
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    It looks like once again the employee becomes the fall guy for corporate greed and bad decisions.

  • November 10, 2004 at 8:13 am
    Chuck says:
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    3,000 people lose their jobs so Attorney General Spitzer can look good for a run at governor of NY. It seems to be the american way. Look at the millions spent to Martha Stewart away for a meaningless charge. It’s just old-fashioned witch-hunting at it’s worst.

  • November 10, 2004 at 10:29 am
    LB says:
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    I feel for the innocent victims of this fiasco but I can see how Marsh would be overstaffed. Brokers who take the time analyze a client’s risk management needs and recommend products based on the best overall value (i.e. quality of coverage relative to price) obviously need more employees to provide that service. But if the only value you provide is to steer business to the lowest priced product (and where you determine which product will have the lowest price), you do not need as many employees. There is a difference between being a full-service broker and the “E-bay” of insurance. At least E-Bay offers truly competitive bids.

  • November 10, 2004 at 10:38 am
    a concerned citizen says:
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    It’s a shame that these employees must feel the brunt of Marsh’s wrongdoing, and the wrath of Spitzer’s crusade to crucify the insurance industry.

    I wish them well in finding new employment.

    Shame on Marsh and Spitzer.

  • November 10, 2004 at 11:32 am
    HateInsurance says:
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    I really feel for these employees, have been there myself (Reliance Ins) but I disagree about Spitzer. He is doing his job & Marsh is breaking the law. I’ll vote for Spitzer for govenor anyday.

  • November 10, 2004 at 11:59 am
    jgreyson says:
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    Re: LB’s posting – Spitzer is also investigating bid rigging on E-Bay.

  • November 11, 2004 at 9:40 am
    Bloxon says:
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    They are getting rid of all the little people (peons), while the 6-figure executives get to keep their jobs. Most of the top executives don’t even do any work, they deligate. This company is so unfair.

    By the way, I heard Greenberg got $7 million and i’m pretty sure Roger Egan and other top executives got a nice going away present. One day they will get theirs…Hopefully, Marsh will end up bankrupt…one can only hope that there is a price to pay for bad deeds.

  • November 11, 2004 at 2:52 am
    CC says:
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    As an ex-Marsh employee I can tell you that we who sold the business did not get any portion of the contingent commissions credited towards our own commission payments – all of that stayed with the company. So, you are correct – those “on the ground” didn’t profit from those practices.

  • November 12, 2004 at 10:37 am
    Robspierre says:
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    I still don’t understand why they are ignoring the family connection. “Father and two sons bring down the industry.” They all get and got paid very well, and they operate(d) unscathed. The Greenbergs are the villains. The father has always been a scum bag. Now the proof is in the pudding and the offspring.

  • November 12, 2004 at 1:14 am
    Soon to be ex-spt employees says:
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    Between Marsh Mac’s 3,000 layoffs and ST Paul Travelers 3,000 layoffs. Some investors could start their own insurance agency or company.
    The ones being laid off have a least 10 years with their company and in some cases 20 years total experience.
    Anybody listening?

  • November 12, 2004 at 2:23 am
    Cindy says:
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    Lots of top execs got the axe on Tuesday. The sad part is that some worked there for over 20 years and got shafted….they are now over 50 women and will never recover…the head of HR is where they are to start – evil woman.

    I worked there for awhile and it was a miserable place.

  • November 12, 2004 at 2:23 am
    Cindy says:
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    Lots of top execs got the axe on Tuesday. The sad part is that some of the assistants worked there for over 20 years and got shafted….they are now over 50 women and will never recover…the head of HR is where they are to start – evil woman.

    I worked there for awhile and it was a miserable place.

  • November 13, 2004 at 8:35 am
    Roger says:
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    It comes as no surprise that the authorities have finally caught up with the unethical business practices sanctioned by the senior management of this broker renowned as being a bully in the market. I am amazed the FSA in the UK has not instigated similar investigations yet. It would not be difficult to find the circulars sent round the company last year re. PSA’s. I used to work there but left because of the awful work environment there and am quite aware of the attitude of the management who are totally detached from the rank and file who have to pay for the errors and omissions and poor management decisions of their superiors. Accountability was never in the business handbook and it would appear that that has not changed. No doubt the Greenberg mafia will walk away with the traditional golden handshakes that have been handed out like sweets to senior management over the last decade.

  • November 15, 2004 at 7:40 am
    Robspierre says:
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    Your referenece to Sandy Weill is appropriate. I had forgotten about him. He’s the money grubber who sold Travelers to St. Paul. Kind of funny that St. Paul is part of this mess, too. Sandy’s daughter should get a life. Oh I forgot, she has ours in her grubby little greasy paws. I wish them all the worst. I’ve been in this business 25 years, and I spend most of my time apologizing to clients about the insurance carriers’ way of doing business. Maybe more regulation is necessary. God, I hate that I just said that, but it seems they can’t be trusted to do the right thing.

  • November 15, 2004 at 2:44 am
    Former Marsh Employee says:
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    It is abosolutely hideous that the little guy pays the price again for corporate greed. This company and it’s subisidiary companies have consistently robbed from the poor(the real workers-underwriters and support staff)
    to give to the rich (senior management). It is a fact of business that lay offs are a necessary evil. They are understandable when an insurance carrier has suffered due to large claims, but the reason behind this lay off is due to fat cats getting fatter. Sickening. I am glad to now be working for a company in the insurance industry that gives all of their employees the opportunity to make good money through hard work and dedication not just senior management through pocket greasing/easy money based on a lie!

  • November 15, 2004 at 5:13 am
    Friend of MMC Layoff says:
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    Well, my buddy got the handshake last week. He was the sacrifice for Greenberg greed. He had nothing to do with commercial insurance, but his head rolled because he was expendable, an ancillary to the focus of MMC. Just writing the personal insurance of the fat cats whose commercial insurance is written by the company.

    He found out today he was the top producer in the company for personal insurance. Guess what? He’s coming on board with my agency. We’re a-goin’ huntin’!

  • November 15, 2004 at 5:17 am
    Right-e-o says:
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    Scumbags they are. They’ve been ruining companies for decades, along with Sandy Weill and the offspring therein, they’ve run our industry down, taking many carriers under, all for the big payoff at the expense of others. they make Enron look like a neighborhood mishap.

  • November 16, 2004 at 11:46 am
    Lucky says:
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    I am also a (happily) former Marsh Cleveland employee.
    Marsh is guilty of MUCH more than the issues coming to light. I got a hush-money pay-out when they terminated me illegally, breaking EEOC regulations and I threatened to sue.
    I witnessed many unsavory actions and unethical business practices take place.
    This company is corrupt fromt he top down.
    “You reap what you sow”.

  • November 16, 2004 at 11:57 am
    Lucky says:
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    I couldn’t agree more.
    No accountability for the upper echelon – all the sh*t runs downhill at Marsh.
    Too bad the people responsible for the mess are getting away with it, and too many “good” folks are hung out to dry.

    Kudos to the earlier comment suggesting that some investors start up a new brokerage or carrier with all of these experienced individuals now available.
    great idea.

  • November 16, 2004 at 3:40 am
    Roger says:
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    The PSA/MSA debacle is only the tip of the iceberg of the unethical practices performed by this bully broker. Having been a “peon” within the system (but came to sense in time) one could not help noticing the total lack of consideration and the bully tactics of senior managers who were totally out of touch with the real working world of the employees within the Group, ie;

    1. Employees were bullied into signing away their rights under the European Working Time Regulations which limits the amount of hours they have to work under threat that they would not “get on” in the company if they did not do so. Although the Senior Management had done so themselves, they get paid ten times more than anyone else !! This is totally against the law and sanctionable by the regulatory bodies.

    2. Bonuses are granted on an annual basis to producing and placing brokers on the basis of realised income (commissions) and not to those who have to service the mess placed in the market for the following x amount of years.

    3. The whole argument that PSA’s and MSA’s are to offset administration and servicing costs is a load of baloney ! Company policy was that business was to be placed principally with those companies which offered PSA’s – so where is the duty to place the business with the best or better priced carrier on the best terms and conditions in the best interests of the client. The broker argument is that they should be remunerated by carriers for producing a profitable book of business so why dont they calculate this at the end of a three or four year cycle as it takes that long for the claims to come through !!! They have not produced a profitable book of business for decades – there would not be so many bust carriers if that had not been the case !!! The brokers should pay back all the commissions related to PSA’s on books of business that never were profitable. At least that will keep the auditors busy ! – just not Arthur Andersen.

    4. Reinsurers/syndicates would be threatened (called “leverage”) with not receiving new business if they did not pay certain non-covered claims or took adverse positions on particular claims of certain important clients.

    5. Most of the employees have no idea who the top management are anyway. The only time you would see them was at the end of year results round when they would boast about all the commissions they had made. We would wonder who the hell these people were – they were never visible in the company – if they ever were there – as they seem to spend all their time flying around the world hobnobbing with the management of other big corporations to scratch each others backs. I am sure they have not even met 90% of the working staff within their own offices.

    How about running some grass roots management courses in these mega-corporations like the japs ! These guys really need to go back to management school.

    The company should be split up into smaller manageable units as the current management are incapable of running a company of that size. Those teams of honest professional specialists in the Group who think they could set up niche specialist brokers offering better service and impartiality could do very well out this.

  • March 4, 2005 at 2:40 am
    Another former NY employee says:
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    well, maybe it’s a corrupted company and they overworked their employees, but in all this mess only poor employees suffer. It was easy for Attorney General to give a huge fine to MARSH because their practice is “fishy”, but I think he could’ve forseen this outcome, when there will be massive lay-offs to cover this fine expenses… SO WHO PROFITS???? This law suit against MARSH hits hardest its low level echelone, and these hardworking people and their families will suffer consequences the most, especially in this low job market, 6 months of unemployment, and stress to find a new job. And ONLY RICH, like top management of MARSH and Attorney General itself, are fine and safe in this world. who would dare to shake their world????????

  • October 1, 2006 at 9:29 am
    Ben says:
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    I\’m just a mail indexer for Mercer in Australia. Thanks to this lawsuit, I too have bitten the dust. It\’s true, the true culprits of this mess will pay no price compared to us – the pawns. I played a very small role in the operating of this company, yet it was still my job, my means of surviving. Just like the rest of the pwans, I\’ll just have to start all over again.

  • October 1, 2007 at 3:41 am
    Tom O'Keefe says:
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    I represent a retired Marsh employee who lost his entire stock position in Marsh from the sale of his agency before the Global Broking bid rigging scheme. Are there any more recent former employees who would be in a position to help us either confidentially or otherwise to establish the fact that the scheme was known to top management and concealed?
    If so please respond to toknkok@aol.com.



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