Pru chief paid £4.7m for 2010
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Prudential has paid group chief executive Tidjane Thiam £4.7m for 2010 after he led the company’s failed bid for AIA at a cost of £377m.
Prudential’s annual report, published yesterday, shows that Thiam (pictured) will get an annual bonus for last year of £1.57m, as well as £2.1m from a long-term investment plan run by M&G and £225,00 in cash supplements for pension purposes.
These payments will be on top of Thiam’s £900,000 salary.
Thiam agreed with Prudential’s remuneration committee that the bonus will be converted into shares and deferred for three years. Normally half of the annual bonus is payable immediately in cash.
Prudential remuneration committee chairman Bridget Macaskill says in the report: “After careful consideration, the committee used its discretion to take the cost of the AIA transaction fully into account in determining the results to be used for bonus purposes.
“Bonuses for all executive directors were therefore based on the results after all AIA transaction costs.”
Thiam and Prudential chairman Harvey McGrath were forced to apologise shareholders last June following the failed takeover of AIA, AIG’s Asian arm. At the time a number of high profile fund managers called for the pair to resign.
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Readers' comments (1)
Michael Fallas | 1 Apr 2011 1:04 pm
This just shows whose interests Prudential is looking after.
Any firm that loses £377 million due to a poorly thought out takeover where these losses could have been avoided should at the very least show restraint from rewarding failure.
As usual shareholders and policyholders pay the price of poor management while those paid to act in their best interests retain all the usual rewards regardless of success or failure.
If we reward success as much as we reward failure then the costs to everyone will only increase further.
The £377 million has to be paid from somewhere it is not imaginary money.
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