Legg Mason CEO to step down

Stock price of Baltimore money manager rises

Fetting is stepping down after Legg posted a $9.5 million loss in the first quarter, its first negative quarter since early 2009. Much of the recent loss reflected the costs of a debt refinancing and launching two funds, the company said.

According to Legg's proxy statement for the 2012 fiscal year ended March 31, Fetting was paid $4.9 million, including salary, bonus and stock-based compensation. That's 17 percent less than what he made the year before, a reduction due to the company's financial performance, according to the proxy.

While Fetting does not have a severance agreement with Legg, according to the proxy, he may be eligible to realize several million dollars from stock options and performance shares after his departure.

Fetting, who will remain as a consultant at Legg until the end of the year, was not available for comment. In a statement, he said he was proud of the progress the company has made in the past five years.

"Now is the right time for new leadership to take the baton and continue to move the company forward into its next phase of growth and development," Fetting said.

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