The MFWire reported a few days ago that Legg Mason [profile] will promote Joe Sullivan — currently the Fetting-appointed head of distribution — to interim CEO. Ross Kerber of Reuters shed new light on the switcheroo yesterday evening with a report that the firm has issued $3 million worth of shares as a retention agreement to the new interim chief.

Sullivan will receive 116,234 shares of Legg Mason common stock, a number significantly larger than that issued Monday to five other executives under retention arrangements, SEC filings posted on the Legg Mason website Wednesday show. Said executives include lead independent director and non-executive chairman-to-be W. Allen Reed, who will receive 20,000 shares, as well as CFO Peter Nachtwey and senior executive VP Ronald Dewhurst, who each received 58,117 shares.

The Reuters story also notes that Legg Mason is under pressure to find a new permanent CEO to please Nelson Peltz of Trian Fund Management, who, with 10 percent of Legg Mason shares, is its largest shareholder. A standstill agreement between the two companies expires Nov. 30, meaning that Peltz may purchase more shares after that time.

Sullivan will take over as interim CEO as Mark Fetting leaves on October 1.  

Edited by: Irene Park


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