Putnam's Parent Agrees to New Director

March 18, 2004 (PLANSPONSOR.com)—Marsh & McLennan Cos. Inc.'s board agreed to nominate Zachary Carter, a former federal prosecutor suggested by four of the largest US state workers pension funds, to their board of directors.

With this announcement, the pension plans withdrew their demands for the right to choose directors for the company, Reuters reported.

The four pension funds, the American Federation of State, County and Municipal Employees Pension Plan (AFSCME), the New York State Common Retirement Fund, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS) collectively owned 6.85 million shares, or 1.3% of the company, valued at about $320 million, at the end of December.

Carter is currently a partner at the law firm Dorsey & Whitney LLP, but, from 1993 to 1999 he served as U.S. Attorney for the Eastern District of New York and was a judge before then, according to Reuters.

Marsh & McLennan is the parent company of   mutual fund company Putnam Investments, which was accused of market timing by federal and state regulators and reached a settlement with the US Securities and Exchange Commission (SEC) last fall.