Pru chairman faces AGM revolt

Prudential chairman Hugh McGrath faces shareholder protest against his re-election at the firm’s AGM on Thursday, led by Fidelity, according to the Financial Times.

Up to 20 per cent of the largest investors are expected to vent their anger at the role played  by McGrath when Prudential was forced to scrap its £21.9bn takeover of rival AIA just over a year ago. Investors refused to back the original bid price and AIA’s parent company, AIG, refused to lower the terms. It cost Prudential £377m in fees.

However, a large shareholder, who was opposed to the AIA takeover, told the Financial Times it would support the management in the vote.

‘A lot has moved on from when we’d have objected [to McGrath’s appointment],’ they told the newspaper.

‘The time to strike was then, but many institutions were lily-livered. It’s pathetic to wait until now to vote against the management.’