Legg Mason Inc. [profile] has hired executive recruiter Korn/Ferry International to search for Mark Fetting's successor, according to a Reuters report.

Legg Mason had announced earlier this month that the embattled Fetting would leave the company as of Oct. 1. According to the Reuters story, Legg Mason's board had come under increasing pressure this year to improve results and boost its lagging stock price.

Reuters reports that since he was named CEO in 2008, Fetting had steered the company through the aftermath of the financial crisis. But Legg Mason shares remain mired at about one-quarter of the $100 level they hit before the crisis, while shares of major competitors have fully recovered. The firm remains dogged by customer outflows and questions about whether to continue as a collection of semi-autonomous investment units like its big Western Asset Management bond division, according to Reuters.

The firm's board includes activist investor Nelson Peltz, who owns 10 percent of Legg Mason shares. Peltz is known for pursuing breakups at other companies.

 

Edited by: Tommy Fernandez


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