Michael Cherkasky, chief executive of Marsh & McLennan, the world's largest insurance brokerage, says the company has worked hard to maintain its lead in the face of legal woes, and he's conscious the firm's lead over rival brokers isn't assured.

"I like our position but it does not mean that we have too wide a lead," said Mr. Cherkasky, now nearly two years into serving as chief executive of Marsh, a company with $12 billion in annual revenues.

"I'm running scared, and I will do it every day of my life," said Mr. Cherkasky, in an interview while on a visit to the Island last Thursday.

"Enron went out of business, Sunbeam went out of business," he said, citing examples of mighty corporations that have fallen, as a reminder that no company is safe.

"With the incredible focus on competition and performance, you can't become complacent," he said. If you do, "you too can go out of business".

Mr. Cherkasky, a former prosecutor, took over the reins for Marsh as the company tried to head off the fall-out from an October 2004 lawsuit from New York Attorney General Eliot Spitzer, alleging corruption at the brokerage. Mr. Cherkasky and Mr. Spitzer, who formerly worked together, ironed out an $850 million settlement three months later.

Marsh Inc., the insurance brokerage unit targeted in the lawsuit, isn't the only company subsidiary to face troubles. Another Marsh unit, money management firm Putnam Investments, was a year earlier was accused of fund-trading violations. That matter was also settled.

Marsh has, since October 2004, shuffled management ? Mr. Cherkasky rose to the top as former CEO and chairman Jeffrey Greenberg was forced to resign. A new chairman followed, with Mr. Cherkasky adamant he didn't want both roles.

In the months since, Mr. Cherkasky's no-frills style (he wears off-the-rack suits, and travels economy class), has been enforced on a company that once counted fat bonus payments from insurers in exchange for favouring them when placing clients' business. The worst of its legal woes behind it (Marsh's legal costs are now about one-quarter what they were near the start of the scandal), Mr. Cherkasky is today focused on moving the global company to a new way of operating.

The firm operates in 100 countries and offers a range of services from insurance broking, and consulting, to human resources. And it must transform itself from a fragmented group of companies under one parent, Marsh & McLennan, into an integrated, seamless, global organisation, Mr. Cherkasky told investors at Marsh's May 18 annual general meeting.

Previously Marsh rewarded staff based on how much they contributed to revenue, whereas Mr. Cherkasky now wants to encourage staff to look out for the best interest of clients, over their own.

He took that message last week to at least 150 of the brokers and captive managers that work for Marsh in Bermuda.

"Bermuda has been a great profit centre for us and now we have to make sure that Bermuda is a thought leadership for the entire globe and not just a profit centre," he said.

Throughout the company's legal troubles, it hasn't lost market share in Bermuda, he said. Mr. Cherkasky declined to say how much its local operations contribute to the company as a whole, but said it was one of the stronger positions Marsh holds anywhere.

"I was talking to our captives (group) here in Bermuda, and telling them we need to make sure that people understand that capacity and use that capacity even if they don't get 'revenue credit'," he said. "You have to do what is best for the client, not what is best for you."

There has been some resistance, including some high-profile defections. "We found that people were being very narrow about making sure that they used the people in their offices even if they were not the best people (for a task)."

Start-up brokerage Integro was founded a little more than a year ago, taking advantage of the sector being tarnished by the allegations against Marsh, and subsequent similar charges against rival brokers, Aon and Willis.

It could also be said that Integro grew out of Marsh, being founded by three former executives of the firm, Bob Clements, Roger Egan and Peter Garvey. And Integro initially hired all its staff from Marsh, later adding employees from Aon, who took legal action, and Willis. The dispute between Aon and Integro was settled in April, for undisclosed terms.

While some staff have left Marsh, and more than 5,000 jobs have been cut since the 2004 lawsuit, Mr. Cherkasky said Marsh is aggressively trying to hire the best.

"Integro is only of note because it came out of Marsh but it is not a competitor that we day to day compete with for business; they are not on the table," said Mr. Cherkasky, "Aon and Willis are (competitors), but not Integro, which I think has been remarkably unsuccessful."

Integro's Mr. Egan and Mr. Garvey, in an April interview, said the company never intends to grow as broad as Marsh. And it says its focus is to plough money back into the fledgling brokerage, over posting a profit, in its first few years.

Mr. Cherkasky says Marsh's breadth is its advantage. "We have such a market advantage with our talent, our global infrastructure and then the fact that we are associated with (subsidiaries) Kroll, Guy Carpenter, Mercer HR.

"I love who we are, I love our brands, I love our infrastructure but if we ever get lazy, complacent or don't understand it is competitive, we will not be successful," said Mr. Cherkasky.

"The whole world wants seamless; they really are not interested in our problems of organising, they want seamless solutions," he said. "And the person that does that better in this marketplace will win and we think we have a great head-start on that."

While Integro may not be copying Marsh's business plan, Mr. Cherkasky said other rivals are. "I see Aon as trying to copy what we already have ? and we have it in size and scope."

He said rivals "are trying to catch us" but won't if he can help it.

"As long as we execute well, we will extend the lead," he said, telling staff to focus on bettering their own efforts, not to worry about what others are doing.