Mark Whiston, 42, the chief executive of embattled fund shop Janus Capital Group, quit and will be replaced by Steve Scheid, 50, the Janus board chairman, the firm announced early Tuesday.

Whiston, a 14-year Janus veteran, will also relinquish his seat on the Janus board of directors, but will stay on with the firm through the end of the year to help with the management transition and to assist with client relations, the firm said.

He is the latest executive casualty in the corporate makeover at company, but Shelley Peterson, a spokeswoman for Janus, said the change was not in response to requests by regulators. Last year, Janus International CEO Richard Garland resigned after it was revealed in New York Attorney General Eliot Spitzer’s settlement agreement with Canary Capital that he had approved market-timing deals. And, more recently, the firm announced the appointment of Goldman’s Gary Black as president and investment chief. Black is to join the firm on the 26 th.

There had been some speculation in recent weeks that Whiston might step down or be forced out as a settlement with regulators was being negotiated. Still, Peterson said that while reaching a settlement is a priority, speculating on a timeline would be premature at this point.

Janus created a $31.5 million restoration fund to repay shareholders that might have been hurt by the timing activity.

"As we look toward the future, Mark and the board concluded it would be in the best interest of our fund shareholders, stockholders and employees for new leaders to shape Janus in the months and years ahead," Scheid said in a statement.

The firm said it will take a $17 million charge, or 4 cents a share, in the second quarter, due to Whiston’s departure. Whiston will receive $5.8 million in cash, which will include a consulting services fee, as per his separation agreement. The firm said it will also establish a $7.9 million deferred compensation retirement arrangement, which will valued in Janus mutual fund shares.

Scheid joined the Janus board as an independent director in 2002, and was named chairman at the beginning of this year. He previously served as the vice chairman of Charles Schwab Corp. and the president of the firm’s retail group for two years beginning in 2000. He was also Schwab’s CFO from 1996 to 1999 and the CEO of Charles Schwab Investment Management from 1998 until 2000.

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