Jeffrey Greenberg, who had run insurance giant Marsh & McLennan since 1999, resigned Monday, less than two weeks after his firm was charged with bid-rigging.
After the announcement, New York Attorney General Eliot Spitzer, who 11 days ago filed the charges against Marsh, said he would not pursue a criminal case against the company.
Taking over for Greenberg as chief executive officer will be Michael Cherkasky, who ironically served as Spitzers boss when both worked at the Manhattan District Attorneys Office. The chairman position will remain vacant.
The charges against Marsh, the parent company to equally maligned mutual fund giant Putnam Investments, stem from alleged steering of insurance clients toward the companies that would kick back the highest fees.
After initially saying he would not negotiate a settlement with the company, Spitzer said that Greenbergs ouster "permits Marsh and this office to move forward toward a civil resolution of our lawsuit."
Cherkasky will keep his positions as chairman and CEO of the firms risk and insurance unit, titles he earned on Oct. 15, the day after Spitzers filed his suit. He and Spitzer are reportedly extremely close friends.
Calling Marsh a "strong company," Cherkasky said, "I am committed to managing the company through this challenging period. I will be working closely with the leadership and colleagues of MMC's operating companies and with our board members to make sure that our business model and processes provide the best service to our clients."