Gallagher's CFO Steps Down

NU Online News Service, Sept. 5, 3:41 p.m. EST?Michael J. Cloherty, executive vice president and chief financialofficer at Arthur J. Gallagher & Company, has resigned hiscurrent positions and stepped down from the firm?s board, theItasca, Ill.-based insurance broker announced.

The resignation was effective Tuesday, and Gallagher said it hasbegun its search for a new CFO. It also announced that Mr. Clohertysigned a 10-year employment contract with Gallagher as specialadvisor to the chief executive officer.

"After guiding the finances of our company very effectively forthe past 21 years, Mike has decided to concentrate his activitieson his growing family business," said J. Patrick Gallagher Jr.,president and CEO.

Mr. Gallagher said the new arrangement would allow Mr. Clohertyto spend more time with his family's real estate operation whileallowing Gallagher to continue to benefit from his expertise. Mr.Cloherty, 54, joined the firm as CFO in 1981 and was elected to theboard that same year, and elected executive vice president in1996.

The firm said he served as the company secretary, and at varioustimes was chief executive officer of Gallagher's brokerage and riskmanagement services division and its financial servicesdivision.

He also served on the executive management team of GallagherBassett Services, the firm's risk management and claims paymentprovider.

Mr. Gallagher credited Mr. Cloherty's efforts over the yearswith 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 NewYork, said the investment service was surprised by the announcementand believes there could be some affect on the company'sperformance in the short-term. However, that affect should bemitigated by Mr. Cloherty's new position within Gallagher, and with"the company's favorable standing in the brokerage community, weexpect it to find a strong replacement."