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Insurer appoints Burns as its CFO
Controversial exec joins troubled firm
By MATT KEMPNER, RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 12/21/05 M. Michele Burns, a top executive who got cushy and controversial perks from an ailing Delta Air Lines and a bankrupt Mirant Corp., is landing at another big company with its own troubles: Marsh & McLennan Cos.
The New York-based insurance and consulting giant announced Tuesday that it has agreed to hire Burns, 47, as an executive vice president starting March 1 and its chief financial officer by March 31.
Burns is scheduled to leave Mirant at the end of December, when the business emerges from its bankruptcy reorganization. She serves as Mirant's chief restructuring officer and had been its CFO.
Marsh & McLennan Chief Executive Michael Cherkasky said in a statement released by the company that Burns "has distinguished herself through her financial leadership, management track record and impressive professional accomplishments."
Efforts to reach Burns for comment Tuesday were unsuccessful. However, in a Marsh & McLennan's news release, she was quoted as saying she is "delighted" to be joining the company.
Marsh & McLennan has faced difficult times in the last two years. New York authorities investigated accusations the company's insurance business committed bid rigging and price fixing. The company settled the matter earlier this year and agreed to pay up to $850 million in restitution. It has more than $12 billion in annual revenue, with holdings that include investment manager Putnam Investments and human resources consultant Mercer, as well as Marsh, an insurance services business, and Kroll, a risk consultant.
Marsh & McLennan has yet to disclose Burns' pay package. Company spokeswoman Barbara Perlmutter said the publicly traded company will report her compensation in a Securities and Exchange Commission filing, probably later this week.
Burns has attracted attention for payouts she received from Delta and soon will get from Mirant.
After 20 months at Mirant, she will have received at least $8.2 million in severance pay, salary, bonuses and other payments from the energy firm.
At Delta, her five-year tenure included controversy over bankruptcy-proof pensions created for executives even as the airline sought a federal bailout and cuts from workers.
The deal gave Burns at least $1 million.
Around the same time she was granted an $846,000 bonus in addition to her $560,000 salary.
Then, earlier this month, she landed in another storm with news that she is fighting Delta about the possible removal of additional perks.
The bankrupt carrier is trying to end the lifetime of free first-class flying privileges it gave Burns and her family when she left the company in 2004.
Neither Delta nor Mirant would discuss Burns' new job.
Perlmutter said Burns will relocate to New York.
Burns will succeed Sandra Wijnberg, who announced in August that she would step down as CFO after six years with the company.
Asked about the past controversies over Burns, Marsh & McLennan's Perlmutter said, "We don't have any comment on that."
Controversial exec joins troubled firm
By MATT KEMPNER, RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 12/21/05 M. Michele Burns, a top executive who got cushy and controversial perks from an ailing Delta Air Lines and a bankrupt Mirant Corp., is landing at another big company with its own troubles: Marsh & McLennan Cos.
The New York-based insurance and consulting giant announced Tuesday that it has agreed to hire Burns, 47, as an executive vice president starting March 1 and its chief financial officer by March 31.
Burns is scheduled to leave Mirant at the end of December, when the business emerges from its bankruptcy reorganization. She serves as Mirant's chief restructuring officer and had been its CFO.
Marsh & McLennan Chief Executive Michael Cherkasky said in a statement released by the company that Burns "has distinguished herself through her financial leadership, management track record and impressive professional accomplishments."
Efforts to reach Burns for comment Tuesday were unsuccessful. However, in a Marsh & McLennan's news release, she was quoted as saying she is "delighted" to be joining the company.
Marsh & McLennan has faced difficult times in the last two years. New York authorities investigated accusations the company's insurance business committed bid rigging and price fixing. The company settled the matter earlier this year and agreed to pay up to $850 million in restitution. It has more than $12 billion in annual revenue, with holdings that include investment manager Putnam Investments and human resources consultant Mercer, as well as Marsh, an insurance services business, and Kroll, a risk consultant.
Marsh & McLennan has yet to disclose Burns' pay package. Company spokeswoman Barbara Perlmutter said the publicly traded company will report her compensation in a Securities and Exchange Commission filing, probably later this week.
Burns has attracted attention for payouts she received from Delta and soon will get from Mirant.
After 20 months at Mirant, she will have received at least $8.2 million in severance pay, salary, bonuses and other payments from the energy firm.
At Delta, her five-year tenure included controversy over bankruptcy-proof pensions created for executives even as the airline sought a federal bailout and cuts from workers.
The deal gave Burns at least $1 million.
Around the same time she was granted an $846,000 bonus in addition to her $560,000 salary.
Then, earlier this month, she landed in another storm with news that she is fighting Delta about the possible removal of additional perks.
The bankrupt carrier is trying to end the lifetime of free first-class flying privileges it gave Burns and her family when she left the company in 2004.
Neither Delta nor Mirant would discuss Burns' new job.
Perlmutter said Burns will relocate to New York.
Burns will succeed Sandra Wijnberg, who announced in August that she would step down as CFO after six years with the company.
Asked about the past controversies over Burns, Marsh & McLennan's Perlmutter said, "We don't have any comment on that."
