Wednesday, February 13, 2013
Legg Mason Finds the New Fetting
News summary by MFWire's editors
| Joe Sullivan|
got the gig. Today, after more than four months as interim CEO, the
] global distribution
chief was appointed president, CEO and board member on a permanent basis, effective immediately. The Legg board also added an asset management veteran, Dennis Kass
, to its ranks.
Sullivan stepped up
as interim CEO on October 1, following the resignation
of chairman and CEO Mark Fetting
. In the meantime, Legg's board hired
executive recruiting shop Korn/Ferry International
to search for Fetting's successor.
Sullivan returned to Legg in 2008 as senior executive vice president and chief administrative officer. Prior to that he served as executive vice president and head of fixed income capital markets at Stifel Nicolaus. He previously worked at Legg Mason Wood Walker, Dain Bosworth and Piper Jaffray.
Kass will join Legg's board on April 1. He retired last year after nine years as CEO of Prudential's Jennison Associates. He previously worked as vice chairman of J.P. Morgan Fleming Asset Management. He also served in several roles in U.S. President Ronald Reagan's administration and spent three years at Goldman Sachs.
The Baltimore Business Journal
, the Baltimore Sun
, Bloomberg Businessweek
, Financial News
all covered the news of Sullivan's appointment.
Company Press Release
JOSEPH A. SULLIVAN APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEGG MASON, INC.
Dennis M. Kass to Join the Legg Mason Board on April 1, 2013
BALTIMORE, MD, February 13, 2013 -- The Board of Directors of Legg Mason, Inc. (NYSE: LM), one
of the world’s largest global asset management firms, today announced that it has appointed
Joseph A. Sullivan President and Chief Executive Officer and a member of the Board of Directors,
effective immediately. In addition, it announced that Dennis M. Kass, a veteran leader in the asset
management industry, will join the Legg Mason Board, effective April 1, 2013.
Since October 1, 2012, Mr. Sullivan has served as Legg Mason’s Interim Chief Executive Officer. He
joined Legg Mason in 2008 as Senior Executive Vice President and Chief Administrative Officer and
more recently, served as Head of Global Distribution.
W. Allen Reed, Legg Mason’s Non-Executive Chairman, who led the Board's Search Committee, said,
"Following a very comprehensive search, that considered a broad list of highly qualified candidates,
Joe was deemed by the Board to have the best combination of personal management skills and
professional experience to lead Legg Mason forward. The selection process included not only the
Search Committee and the Board, but also the leaders of our affiliate managers and senior
“Over the past four months, since being named Interim CEO, Joe has acted with a sense of urgency
and clarity of purpose,” said Mr. Reed. “We have been impressed that he is bringing a fresh
perspective and renewed energy to Legg Mason, has a clear vision for the Company and has
demonstrated an ability to address the challenges and opportunities necessary to regenerate the
growth of Legg Mason. The Board is unanimously aligned with the direction Joe wants to take the
company and believes his no-nonsense management style will enable a fast start on the path to
rebuilding Legg Mason as a premier asset management company. Importantly, Joe has developed a
relationship with the affiliate leadership teams that the Board believes will enable a collaborative
and mutually beneficial process that begins a new and exciting chapter in Legg Mason’s history. He’s
earned the confidence of the entire firm and is ready to lead Legg Mason as its new CEO.”
Mr. Sullivan said, “I am honored to have been selected as Legg Mason’s new CEO, optimistic about
our growth prospects, and fully committed to and believe in the Legg Mason affiliate business
model. One of my top priorities when I assumed the Interim role in October was to bring our
executive team, our affiliate leadership, and our Board together to create a shared vision for Legg
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“That shared vision centers primarily on growth and we are firmly committed to working together
toward that important goal,” added Mr. Sullivan. “We will seek to do this organically and through
acquisitions of teams and firms that build and diversify our affiliate managers and fill our product
gaps. And, as always, we will also continue our efforts to be more efficient across all business
“While much work remains to be done, I am excited about Legg Mason’s future. We have
outstanding world class asset managers, an excellent global distribution platform, and a strong
balance sheet. With signs that the economy is improving and renewed confidence in the markets, I
believe we are in an excellent position to compete, resume growth, and enhance shareholder
value,” added Mr. Sullivan.
Commenting on Mr. Kass’ appointment to the Board, Mr. Reed said, “We are delighted to add
Dennis Kass as a new independent member of the Legg Mason Board. Dennis is a highly regarded
executive in the asset management industry who has the insights of both a diversified global asset
manager and of an affiliate company CEO. We are confident that he will bring a unique perspective
that will be valuable to the Board of Legg Mason.”
Background on Joseph Sullivan
In addition to his positions at Legg Mason, Mr. Sullivan also serves as a current Trustee and former
Chair of the Securities Industry Institute, was a former Chair of the Fixed Income Committee of the
National Association of Securities Dealers (NASD), a Board Member of the Bond Market Association
and a member of the New York Stock Exchange (NYSE) Hearing Board.
Since Mr. Sullivan joined Legg Mason in September 2008 he served as Senior Executive Vice
President and Chief Administrative Officer and then as the firm’s Head of Global Distribution before
being appointed interim Chief Executive Officer last fall. Prior to Legg Mason, Mr. Sullivan served on
the Board of Directors of Stifel Financial and as Executive Vice President and Head of Fixed Income
Capital Markets for Stifel Nicolaus from December 2005 until rejoining Legg Mason in 2008. Mr.
Sullivan has more than 30 years of industry experience, holding prior executive roles at Legg Mason
Wood Walker, Dain Bosworth and Piper Jaffray.
Mr. Sullivan holds a Bachelor of Arts degree in Economics from St. John's University (MN) and is a
graduate of the Securities Industry Institute at the Wharton School of Business at the University of
Mr. Sullivan is active in public service and committed to improving education having served as a
member of the Boards of Trustees for Catholic Charities and St. Ignatius Loyola Academy, Chair of
the Board of Trustees of Loyola Blakefield School, and President of the Baltimore Youth Hockey
Background on Dennis Kass
Mr. Kass retired in 2012 as CEO of Jennison Associates, an asset management company wholly-
owned by Prudential Financial, Inc., having served in this position since 2003. Previously, he had
spent more than a decade with JP Morgan’s Investment Management unit, culminating in the
position of Vice Chairman of JP Morgan Fleming Asset Management.
Mr. Kass served in the Reagan Administration from 1985 to 1987 as the Assistant Secretary
of Labor for Pension and Welfare Benefits and was a Special Assistant to the President for
Policy Development from 1981 to 1982. His early private sector roles included spending
three years with Goldman Sachs as a Vice President in investment banking and pension
Mr. Kass holds a MS degree in Management from the Massachusetts Institute of Technology and a
BA degree in History from Principia College. He is a trustee of the Financial Accounting Foundation,
serves on the Advisory Board for Finance and the Global Executive Board for M.I.T.’s Sloan School of
Management, and is on the board of the not-for-profit buildOn.
About Legg Mason
Legg Mason is a global asset management firm with $654 billion in assets under management as of
January 31, 2013. The Company provides active asset management in many major investment
centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its
common stock is listed on the New York Stock Exchange (symbol: LM).
Neil Anderson, Managing Editor
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