Legg Mason CEO To Quit

Sep 12 2012 | 11:28am ET

Asset management giant Legg Mason's CEO has quit in advance of a potential new round of hostilities with activist hedge fund Trian Fund Management.

Mark Fetting, who took over from firm founder Raymond Mason almost five years ago, will step down as chairman and CEO on Oct. 1. Two months later, a standstill agreement with Trian expires, allowing the hedge fund to once again to build up its stake in Legg and ending a prohibition on attempts to force a sale or merger of Legg's nine affiliates, which include fund of hedge funds manager Permal Group.

As part of that agreement, struck during Fetting's second year at the helm, Trian chief Nelson Peltz joined the Baltimore-based firm's board of directors.

Legg said that head of global distribution Joseph Sullivan would become interim CEO and independent director W. Allen Reed non-executive chairman.

Fetting's tenure has been marked by a swooning share price, precipitous client withdrawals and job cuts.

Trian is Legg's largest shareholder, with a stake of about 10%.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...