Gallagher's CFO Steps Down
NU Online News Service, Sept. 5, 3:41 p.m. EST? Michael J. Cloherty, executive vice president and chief financial officer at Arthur J. Gallagher & Company, has resigned his current positions and stepped down from the firm?s board, the Itasca, Ill.-based insurance broker announced.
The resignation was effective Tuesday, and Gallagher said it has begun its search for a new CFO. It also announced that Mr. Cloherty signed a 10-year employment contract with Gallagher as special advisor to the chief executive officer.
"After guiding the finances of our company very effectively for the past 21 years, Mike has decided to concentrate his activities on his growing family business," said J. Patrick Gallagher Jr., president and CEO.
Mr. Gallagher said the new arrangement would allow Mr. Cloherty to spend more time with his family's real estate operation while allowing Gallagher to continue to benefit from his expertise. Mr. Cloherty, 54, joined the firm as CFO in 1981 and was elected to the board that same year, and elected executive vice president in 1996.
The firm said he served as the company secretary, and at various times was chief executive officer of Gallagher's brokerage and risk management services division and its financial services division.
He also served on the executive management team of Gallagher Bassett Services, the firm's risk management and claims payment provider.
Mr. Gallagher credited Mr. Cloherty's efforts over the years with helping drive the firm's success with revenues expected to top $1 billion by the end of this year.
Alice Schroeder, an analyst for Morgan Stanley & Co. in New York, said the investment service was surprised by the announcement and believes there could be some affect on the company's performance in the short-term. However, that affect should be mitigated by Mr. Cloherty's new position within Gallagher, and with "the company's favorable standing in the brokerage community, we expect it to find a strong replacement."
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