Legg Mason to Pay $30m in Terminations
Legg Mason, the fund manager, has put aside $30m to deal with Citigroup Asset Management employee terminations following its acquisition of the funds business.
In a regulatory filing with the Securities and Exchange Commission Legg Mason said it has begun to implement the termination plan and expects to complete it within one year.
All of the termination benefits will be paid in cash and approximately half of these benefits will be recorded as additional purchase consideration.
Legg Mason closed a $3.7bn deal with Citigroup last week in which the Baltimore-based manager took over $400bn in assets under management from Citigroup.
The Citigroup business is to be split into three. Brian Posner, who joined Legg Mason from Fidelity Investments, is to head up the mutual fund operations acquired from Citigroup.
The bulk of the fixed income business will be integrated into Western Asset Management and the international equities business will be led by Michael Even, former chief investment officer of Citigroup Asset Management.
Citigroup did not return calls for comment.