Prudential PLC PRU

DJ Prudential To Consult Holders On Pay As 30% Reject Pay Report

 
  By Vladimir Guevarra 
  Of DOW JONES NEWSWIRES 
 

LONDON (Dow Jones)--Prudential PLC (PRU.LN), the U.K.'s largest insurer by market capitalization, said it will review its pay structure after some 30% of voting shareholders in the company annual general meeting voted against Prudential's remuneration report.

The non-binding vote comes after the company last year paid GBP7.6 million to Michael McLintock, chief executive of Prudential's asset management arm M&G Investments.

McLintock's 2011 total remuneration, including releases from the long-term incentive plan, is 41% higher than the GBP5.4 million he received in 2010, which in turn is 14% higher than the GBP4.73 million he got in 2009.

Reacting to the vote, Chairman Harvey McGrath said: "We will, of course, engage with shareholders to understand their concerns and to consult with them on how best to structure our remuneration."

"We remain committed to the principle that remuneration should reflect success in delivering results for shareholders," he said.

Last year, M&G had an operating profit of GBP301 million, up 22% from a year earlier, and forming roughly 15% of Prudential's operating profit. It had assets under management worth GBP201 billion at end-2011.

McLintock's pay overshadowed the GBP4.72 million paid to Prudential CEO Tidjane Thiam. That pay to Thiam was 3% lower than the GBP4.86 million he received in 2010.

Barry Stowe, head of Prudential's Asian business, had total remuneration last year of GBP4.65 million, up from GBP3.1 million in 2010.

- By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com

(END) Dow Jones Newswires

May 17, 2012 09:22 ET (13:22 GMT)

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