Although I hesitate to start a new thread on topic of Schapiro/Roseman board service, there is much fun material here. Today the New York Times reports that

Board members and senior executives of Marsh & McLennan, the giant insurance broker that has been accused of cheating customers, put millions of dollars into a partnership that profited by buying companies from Marsh and investing in companies that work with Marsh.

Shades of The Smartest Guys in the Room, Bethany McLean’s ’92 marvelous book about Enron. I would wager the scandal here, if there is one, will involve the executive directors and not the independent ones like Morty. He is way too smart to get involved with anything that even looks like self-dealing.

The article also notes that

Experts on corporate governance have complained that Marsh’s board, which has 6 insiders and 10 independent directors, is extremely weak and has not taken leadership as the insurance broker’s legal problems worsen. Only two independent directors are employed by public companies: Lord Lang, a former British politician who is chairman of Thistle Mining, and Stephen Hardis, chairman of Axcelis Technologies.

Allow me to parse this. When people say that Marsh’s board is “weak,” they mean that the independent directors (the ones unconnected to the company) are not serious business people with useful experience and reputations to protect. When people say the board is weak, they are really saying that Morty, among others, is weak.

I am not sure that I believe this, and Morty is just 1 of 9 or 10 independent directors. But many people do believe that the board handled the Putnam mess poorly, and in a way that was excessively kind to company management.

Senior executives with low morals like weak boards because it allows them to get away with nefarious deeds more easily.

Meanwhile, the Wall Street Journal reports ($ req.) that

Meanwhile, some of the 10 outside directors on Marsh’s 16-member board, who received little notice before Mr. Spitzer filed his civil lawsuit against the company, have been in contact with Mr. Spitzer’s office, according to a person familiar with the situation. In announcing the suit, Mr. Spitzer said he wouldn’t negotiate with Marsh’s top management, headed by Chairman and Chief Executive Jeffrey W. Greenberg.

Hmmm. There is (another) Fortune article here for Bethany McLean.

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