Pru shelves execs' bumper pay deal

12 April 2012

PRUDENTIAL, the insurance group, has shelved a pay deal that could have landed chief executive Jonathan Bloomer millions of pounds, after investors baulked at the proposals.

The group had been due to put the executive pay scheme to shareholders at its annual meeting on Thursday. But it said investors wanted more details on the scheme. Earlier reports said a quarter of the Pru's largest shareholders would either vote against the proposal, or abstain at the meeting.

The scheme would have handed Bloomer a bonus of £900,000 this year, on top of his basic salary. He earned a basic £660,000 last year. The bonus could surge to £4.6m if the Pru outperformed its international peers.

The insurer has been lobbying institutional investors on the proposals for the past five months, the Financial Times reported.

The National Association of Pension Funds has advised its members to support the scheme, the paper added. But it has urged the Pru not to lower the scheme's demanding performance targets after the first year, a decision at the discretion of the Pru's remuneration committee. Corporate governance consultancy Pirc opposes the scheme, saying it is too complex.

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