Legg Mason Sees $20 Million in Severance CostsAlexis Leondis
Legg Mason Inc., the money manager seeking to reverse more than five years of net redemptions, will incur a combined $20 million in severance and other costs in the current and next quarter.
Expenses tied to closing and reorganizing businesses will lead to costs of about $10 million each in the quarters ending Sept. 30 and Dec. 31, the Baltimore-based company said today in a regulatory filing. Following the changes, Legg Mason expects to see about $2.5 million in net increases in quarterly pretax earnings, beginning in the three months ending March 31.
The reorganization includes closing Legg Mason’s emerging-markets equity unit, Esemplia Emerging Markets, and transitioning the client-services business in Canada to the firm’s affiliates, said Mary Athridge, a spokeswoman for Legg Mason.