Marsh & McLennan Companies, Inc. said that its board of directors has adopted a series of amendments to MMC’s guidelines for corporate governance, including a rule that directors must acquire MMC equity with a value of at least $100,000 within three years of joining the board.
Also, senior executives must attain specified levels of MMC equity ownership, based on a multiple of annual salary, over a five-year period.
The governance changes assert that ss a general matter, directors should not serve on more than four additional public company boards; a director elected by the board must stand for re-election at the next annual meeting of stockholders; and a director who has a significant change in employment or other personal circumstances must offer to resign.
Stephen R. Hardis, MMC’s independent chairman, said: “The board of directors continually looks for ways to improve MMC’s approach to corporate governance. The policies announced today result from an ongoing review, and are the latest in a series of governance enhancements implemented by the board over the last two years.”
MMC is the parent company of Marsh, the risk and insurance services firm; Guy Carpenter, the risk and reinsurance specialist; and Kroll, the risk consulting company.
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