Pru chairman to call it a day

published 20 December 2011

Harvey McGrath, chairman of Prudential, is to retire from the board of the insurance giant next year once a successor has been found.

McGrath was appointed as an independent non-executive director of the Pru in September 2008 and became Chairman of the board in January 2009.

He was at the helm when the company's controversial attempt at taking over Asian insurance giant AIA at a cost of $35bn foundered after it ran into intense opposition from shareholders.

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In a vote at last May's annual general meeting on whether to re-elect McGrath to the board, just under 22% of the votes cast were against the chairman's re-election, as shareholders expressed anger at the £450m in break fees and other costs associated with the abortive takeover.

After a protest vote of that magnitude - virtually unprecedented in recent times for a blue-chip company - many observers thought it would only be a matter of time before the 59-year-old McGrath made his exit.

Commenting on his intended retirement, Harvey McGrath, said: "I felt it was important to give the board good notice of my intentions so that the process of appointing a successor can get underway. Prudential is performing very well, there is a strong and reinvigorated board in place and we are fortunate to have a Chief Executive of Tidjane Thiam's calibre driving the business."

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