Aon agrees on key financial terms of five-year employment agreement

Sep 14, 2010 (Datamonitor via COMTEX) -- Aon, a provider of risk management services, insurance and reinsurance brokerage, and human capital consulting, has announced that in connection with the proposed merger of Hewitt Associates with Aon, Aon and Russell Fradin, Hewitt's current CEO, have agreed on the key financial terms of a five-year employment agreement that, when completed, will be contingent and will become effective upon consummation of the merger.

The key financial terms include: Mr Fradin will serve as chairman and CEO of Aon Hewitt reporting to Greg Case, president and CEO of Aon; the term of the employment agreement will be for five years from closing of the merger.

Further, Mr Fradin has agreed to take a substantial portion of his change in control compensation in Aon restricted stock units that will be distributed only when he ceases to be employed by Aon; he has also agreed to retain all future granted equity compensation awards (net of any amounts necessary to pay taxes and exercise prices) until he ceases to be employed by Aon.

Baljit Dail will become CEO of the consulting business. He is currently the CEO of Aon Consulting and COO of Aon Benfield; Kristi Savacool will become CEO of the benefits administration business. She is currently senior vice president of large market benefits outsourcing for Hewitt; Jim Konieczny will become CEO of the human resources (HR) business process outsourcing (BPO) business. He is currently president of HR BPO for Hewitt.

Greg Besio is leading the overall Aon Hewitt integration. He is currently Aon's chief administrative officer; Scott Ordway will become the CFO of Aon Hewitt. He is currently vice president of finance and operations for Aon; David Baruch will become the chief information officer of Aon Hewitt. He is currently the chief information officer of Hewitt; Neela Seenandan will become global head of HR for Aon Hewitt. She is currently global head of HR for Aon Benfield; Mark Sproat will become chief counsel-Aon Hewitt. He is currently the associate general counsel for Hewitt Outsourcing.

Mr Case said: "We are thrilled that Aon over the long-term will benefit from Russ's strong leadership. I look forward to working with Russ and his senior leadership team as Aon Hewitt strengthens its position as a global leader in human capital solutions."

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