The head of a financial services company that is spending about $32 million to settle litigation is stepping down.[@@]

The company, Waddell & Reed Financial Inc., says Keith Tucker has given up his posts as chairman and chief executive.

Tucker, who took over as the chief executive of Waddell & Reed, Overland Park, Kan., in 1992, will continue to be a consultant and non-voting board member for 8 years, Waddell & Reed says.

Waddell & Reed once was part of Torchmark Corp., Birmingham. Torchmark converted Waddell & Reed into a separate company in 1998. Waddell & Reed provoked lawsuits and regulatory actions in the early 2000s, when it tried to cut ties with Torchmark by having thousands of clients who held annuities issued by units of Torchmark roll funds into annuities issued by a life insurance unit of another company.

Henry Hermann, Waddell & Reed’s president, now will be the company’s chief executive, and Alan Kosloff, an independent member of the Waddell & Reed board, will be the chairman, Waddell & Reed says.

Hermann began working for Waddell & Reed in 1971 and has been the company’s president since 1998.

Kosloff has been a company director since 2003. He has been chairman of Kosloff & Partners L.L.C., Kansas City, Mo., an investment firm, since 1996. Before that, Kosloff was chairman of a sportswear company and an apparel manufacturing firm.