Prudential chief executive Tidjane Thiam is to receive a £7m bonus despite being censured and the company being fined £30m by the FSA last week over its failed bid to buy AIA.
The Sunday Times reports Pru plans to award Thiam £5m in shares as part of a long-term executive pay scheme, plus a £2m deferred bonus.
The newspaper says the payout would go against the push from the regulator to “claw back” bonuses from bosses who no longer warrant them. But The Sunday Times says Thiam has hit many of his long-term financial targets a year ahead of schedule, and increased its dividend last month from 17.2p to 20.8p.
The FSA fined Pru £30m and censured Thiam last week over failing to inform the regulator it was seeking to acquire AIG’s Asian arm AIA in early 2010. The FSA was not informed of the bid until after it had been leaked to the media.
Pru launched its failed $35bn (£23bn) bid to acquire AIA in March 2010, which was to involve a rights issue of £14.5bn, the biggest ever in the UK. The deal failed after Pru shareholders forced the company to renegotiate the price, which AIA refused to accept.
In August 2010 Pru revealed its failed bid for AIA had cost the company £377m.