Quarterly Profit Down 62% at Marsh

February 12, 2008

  • February 12, 2008 at 3:34 am
    Been around too long says:
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    This is the beginning of Eliot Spitzer’s true impact on the elimination of Contingent Commissions. This result was easily predictible. What would one expect giving up half or more of a Public Broker’s profit normally coming from Contingent Commissions? “Hoping” to increase revenue from Clients by increased fees or “disguised” additional compensation from carriers based on performance is a pipe dream. From the very beginning, Risk Managers and Public Entities felt this bonus money was coming out of their pocket and to negotiate additional compensation on the basis of “we’re being paid less for the same service” is falling on deaf ears. Joe Plumerie put the final nail in the coffin of Contingent Commission for Public Brokers when he publicly rejected any form of additional compensation based on profitability. A hero among Risk Managers at the expense of thousands of Marsh stockholders. Oh! the price of a standing ovation from the RIMS Boys and Girls.

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