Prudential Plc (PRU), the U.K.’s biggest insurer by market value, named Paul Manduca as chairman to replace Harvey McGrath, who oversaw the company’s failed $35.5 billion bid for AIA Group Ltd. (1299) two years ago.
Manduca, 60, who was chief executive officer of Deutsche Bank AG (DBK)’s European asset management unit from 2002 to 2005, will start on July 2, the London-based insurer said in a statement today. As Prudential’s senior independent director, he had been leading the search for a chairman until he was asked to become a candidate, the company said.
McGrath, 60, had been pressed to step down by investors including Schroders Plc (SDR) and Jupiter Fund Management Plc (JUP) after the failure of the bid for AIA, American International Group Inc. (AIG)’s Asian business. About 22 percent of shareholders opposed his re-election or abstained at a vote last year after the bid cost Prudential 377 million pounds ($591 million) in fees to lawyers and advisers.
Manduca will step down as chairman of Aon Corp. (AON)’s U.K. division to make Prudential his main focus, the firm said. The company will appoint a replacement senior independent director in due course.
Manduca, who was founding CEO of Threadneedle Asset Management Ltd., will be paid 600,000 pounds a year, 20 percent more than McGrath received in salary last year. The appointment has been approved by the Financial Services Authority, Prudential said.
Prudential Plc has no relation to Newark, New Jersey-based Prudential Financial Inc.
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