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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note