Legg Mason Inc. (NYSE:LM) Q4 2019 Earnings Conference Call Transcript

May 13, 2019 • 05:00 pm ET

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Legg Mason Inc. (NYSE:LM) Q4 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Thank you. Our first question online comes from Chris Harris from Wells Fargo.

Analyst
Chris Harris

Yeah. Thanks guys. My question is on the strategic restructuring. Wondering, if you could talk a little bit about the original affiliate plan and exactly what didn't work exactly as planned with it? And just hoping you could elaborate on whether it's just lack of affiliate buy-in or if the answer is a bit more complicated than that. And then related, credit cost sharing initiative with the affiliates an opportunity down the line for Legg Mason or should we be completely not thinking about that this time?

Executive
Joseph A. Sullivan

So as I mentioned in my comments, Chris, the plans that we announced to create a global business platform inclusive of shared services at corporate and certain operations at a number of our affiliates did evolve. And that was based on feedback that we got some before, but also after we announced last quarter. And that -- those plans really have evolved to being largely focused on achieving the cost saves from our corporate operating platform. And again, that was just really a function of -- and as we talked about on the last earnings call, we announced the design of a global business platform, but we had to really go deeper at that point within, not only Legg Mason, but also our affiliates to see where that -- if and where that made sense to do so. We've evolved it to a way -- in a way that allows our affiliates too still participate, where it makes sense for them to do so in sharing costs and leveraging the platform that we already have. We have a global business platform in existence today. We're just making it significantly more efficient and effective and leverageable for -- on the part of our affiliates. We're always open to ongoing ideas and I think the affiliates are as well to things that makes sense for them to do to leverage and look to reduce costs and we have a number of a different initiatives continuing underway right now to that end.

Analyst
Chris Harris

Very good. Thank you.

Operator
Operator

And thank you. Our next question online comes from Mr. Robert Lee from KBW. Please go ahead.

Analyst
Robert Lee

Great, thanks. Thanks for taking my question. I guess, maybe -- and just wanted to ask a little bit about capital management. How are you thinking of this? I mean, you obviously raised the dividend by a pretty hefty amount. Can you just -- where do you kind of put share repurchase or restarting that within kind of the mix going forward? Obviously, you have to pay for the restructuring, but how do you think of that within the mix? And maybe as part of that, you have the option now that -- to buy in the remainder of the Precidian. I mean, how does that kind of play into at least over the near-term, your thoughts around capital management?