Prudential Pays CEO $11.9 Million for 2012 on ReprimandKevin Crowley
Prudential Plc, the U.K.’s biggest insurer by market value, paid Chief Executive Officer Tidjane Thiam 7.8 million pounds ($11.9 million) in 2012 even after he was reprimanded by the British regulator.
Thiam, 50, received a 1 million-pound salary, 2 million pounds in bonus and 4.4 million pounds in long-term incentives for performance periods ending in Dec. 31, 2012, London-based Prudential said today in its annual report. The firm paid its directors 35.2 million pounds last year compared with 31.4 million pounds in 2011, it said.
The Ivory Coast-born French national last week became the first serving CEO of a FTSE 100 company to receive a public reprimand from the U.K. regulator for not informing it of the insurer’s $35.5 billion bid for AIA Group Ltd. early enough in 2010. Prudential was fined 30 million pounds. The insurer, which competes with AIA selling life insurance in Asia, has risen almost 90 percent in London trading since the deal failed three years ago as Thiam boosted sales, profits and dividends.
“The excellent results delivered in 2012 build on strong financial performance over recent years,” Andrew Turnbull, chairman of Prudential’s remuneration committee, wrote in the report. “This has generated significant returns for shareholders over the period 2010 to 2012 through share price growth and dividends paid.”
The firm’s 2010 performance share plan will be paid in full, Turnbull wrote.
Prudential’s operating profit rose 25 percent to 2.53 billion pounds in 2012, beating analyst estimates, on higher earnings in Asian countries such as Indonesia, Singapore and Malaysia. Thiam raised the company’s full-year dividend 16 percent to 29.19 pence a share. That’s 53 percent more than when he joined the firm in 2009.
The firm’s U.S. CEO Mike Wells was the second-highest paid director after Thiam in 2012, receiving 6.6 million pounds, with almost half in long-term incentives. Michael McLintock, CEO of Prudential’s fund management arm, M&G, received 5.3 million pounds.