The former chief executive of Putnam Investments, who was ousted after the market timing scandal erupted at the Marsh & Mclennan-owned mutual fund manager, will receive $78 million in compensation.
Lawrence Lasser and Putnam entered into arbitration in January in a dispute over how much money was owed to Lasser. A lawyer for Lasser said his client realized virtually all the expectations of his contract. In a filing with the US Securities and Exchange Commission, Marsh said the settlement represents about $25 million less than the company had accrued in compensation expense for Lasser in previous years.
Marsh declined to comment further, other than to say the settlement was good for Putnam’s shareholders and employees.
“It’s fair to say Mr. Lasser is extremely pleased with the result,” said Daniel A. Pollack of Pollack & Kaminsky, lead counsel in the arbitration case. Lasser was freed from a non-compete agreement that would have kept him from working for a competitor for six years, allowing him to work immediately, Pollack said. Marsh also agreed to indemnify Lasser for all claims against him by any other party in future legal proceedings, he said. Marsh and Putnam also withdrew their termination for cause, and Lasser obtained a general release for all claims from Putnam, a spokesman for Lasser said.
In previous SEC filings, Lasser was promised $15 million upon retirement in a 1997 agreement that was amended in 2001 to include almost $17 million more. The promised payment was to be made on 31 December 2005.