Pru set for boardroom shake-up

28 June 2010 0:00 am | Updated: 28 June 2010 9:08 am | By Natalie Holt

Prudential is hiring two non-executive directors in a move which could see chairman Harvey McGrath leave the insurer.

The recruitment process will aim to strengthen the board in the wake of Prudential’s failed takeover of AIA, AIG’s Asian arm, says a report in The Sunday Times.

This will lead to an orderly succession plan to be drawn up to potentially replace both McGrath and chief executive Tidjane Thiam.

Major shareholders including Fidelity, which owns a 2.5 per cent in the insurer, and Legal & General, are thought to be campaigning for the chairman and chief executive to step down following the collapse of the bid for AIA earlier this month which has run up £450m in costs.

One of the new directors is thought to have a good record in Asia, while the other is understood to have more general business experience.

Headhunters have not yet been appointed, but former chief executive of JP Morgan Cazenove Naguib Kheraj, former City minister Lord Myners, and former chairman of Standard Chartered Lord Davies have all been linked to the chairman role.

 

 

 

 

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing