In a filing with the U.S. Securities and Exchange Commission, MMC revealed that it entered into a new employment agreement with Mr. Cherkasky. The contract renews for successive one-year terms after the original three-year deal, unless Mr. Cherkasky or MMC decides not to renew it.

If MMC does not renew the agreement, Mr. Cherkasky's equity awards will vest. Under this plan, he will be eligible for stock awards with a combined annual target value of $5 million. Also, if the company does not renew his contract before he turns 62, MMC will pay him an amount equal to his salary and average bonus. Mr. Cherkasky is 54.

In addition to his annual salary, Mr. Cherkasky will be eligible for an annual bonus opportunity ranging from 150-to-300 percent of his annual base salary, with a minimum $2.5 million for 2005, the filing said. The bonus awards are based on achievement goals outlined in the agreement.

The filing spelled out other salary and bonus terms he would be entitled to if he is terminated or if control of the company changes hands. For the most part, he would be subject to a non-compete agreement for 24 months following termination.

Mr. Cherkasky took over the New York-based MMC after Mr. Greenberg left the company in the face of mounting pressure from a lawsuit filed by Mr. Spitzer.

At the time of the suit, Mr. Spitzer said he would not negotiate with the then management of MMC. Shortly thereafter, Mr. Greenberg and other high-level executives left the firm and Mr. Cherkasky, who had been the CEO of Kroll–a subsidiary of Marsh–took over.

Quotebox, with Cherkasky mug (but no quote marks!):

CEO Michael G. Cherkasky says MMC will still be in for some rough sailing, but he predicted the company would see further improvements throughout the year and begin its turnaround by the beginning of 2006.