The departure of Chief Executive Officer Mark Fetting from embattled money manager Legg Mason has the firm reshuffling its top management in the face of a looming face-off with hedge fund manager Nelson Peltz of Trian Fund Management.
Fetting will step down Oct. 1, roughly two months before a standstill agreement with Peltz expires. That agreement bans Peltz, who secured a seat on Legg Mason’s board in 2009, from forming any partnerships or agreements to amass a larger voting block or force a sale or merger of any Legg Mason affiliates. That agreement ends Nov. 30. Trian holds a 10.5% stake in Legg Mason, and is the firm’s largest shareholder.