London - Prudential ended weeks of speculation about its future by appointing Mike Wells as its new chief executive on a £7.5m pay package.
The 54-year-old American had been widely tipped to replace the outgoing Tidjane Thiam, who is heading off to join the Swiss banking giant Credit Suisse after an eventful six years in charge of Britain's largest insurer.
Wells, who currently runs Prudential's US business, Jackson National Life, joined the insurer's board in 2011 and will take the top job on 1 June, now that his appointment has been approved by the City regulator.
The chairman, Paul Manduca, said he expected the group to “make further progress” under Wells.
“Following a rigorous succession planning process, we have found a fitting and experienced successor to Tidjane in Mike Wells, who has extensive experience of life insurance and asset management,” he said. “As a member of the board he has contributed to our successful strategy, which has delivered value for our customers and shareholders. The group will make further progress under his leadership.”
Other internal candidates for the top job are believed to have included the finance director, Nic Nicandrou, and Jackie Hunt, who runs the insurer's UK business.
The Ivorian Thiam quit insurance rival Aviva to join Prudential in 2007 and succeeded Mark Tucker as the group's chief executive two years later. Although his reign has coincided with a significant rise in the company's share price, it has not been without controversy and almost came to an abrupt end after Prudential's bungled bid for AIA in 2010, which later led to a £30m fine by the City regulator.
An investor rebellion forced the company to pull the plug on the $35.5bn (£23.4bn) deal for the Asian subsidiary of America's AIG, leaving the company nursing a bill for £377m in fees. At the time, fund managers across the Square Mile were calling for Thiam's head, criticising his decision to pursue a non-executive directorship at Société Générale at the climax of the process.
Thiam said: “Mike has an outstanding track record. I have enjoyed working with him for the last seven years and I am pleased to be leaving Prudential in the hands of such an experienced leader.
“I am also pleased to be able to leave Prudential in excellent shape and I am confident that the group will continue to deliver valuable products and services to its millions of customers around the world, and create significant value for its shareholders, its staff and the communities in which it operates.”
Wells' new pay package includes £1.07m in basic pay as well as a bonus worth a maximum 200 percent of base salary, and other benefits. He was the company's best paid executive in 2013 when he picked up £11.7m. The outgoing Thiam made £11.8m in pay and bonuses last year.
Mike Wells joined the Pru board in 2011 and has been running the US business, Jackson National Life
The Independent