Prudential boss receives bonus despite public reprimand

UK insurer Prudential paid its Chief Executive Officer (CEO) Tidjane Thiam 7.8 million pounds last year after he was reprimanded by the British watchdog over a bid for AIA Group.

UK insurer Prudential paid its Chief Executive Officer (CEO) Tidjane Thiam 7.8 million pounds last year after he was reprimanded by the British watchdog over a bid for AIA Group.

In its annual report Friday, the company said Thiam received a £1.0m salary, a £2.9m bonus and £4.4m in long-term incentives for his performance in 2012.

The firm paid its directors £35.2m last year compared with £31.4m in 2011.

Thiam last week received a public reprimand from the Financial Services Authority for not informing it of its offer for AIA Group early enough in 2010. He became the first serving CEO to receive a reprimand from the UK regulator and Prudential was fined £30m.

Prudential's shares have risen almost 90% since the AIG deal fell through three years ago.

The company reported a 25% increase in 2012 operating profit to £2.53bn, beating analysts' estimates. The results were driven by strong performances in Asian countries such as Indonesia, Singapore and Malaysia.

The firm's full-year dividend was raised 16% to 29.19 pence a share.

"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."

Shares fell 0.85% to 1,046p at 11:15 Friday.

RD

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