Britain’s largest insurance group has earmarked ex-Financial Service Authority chairman Sir Howard for a non-executive role with Paul Manduca – another respected City figure – tipped to succeed James Ross as the company’s senior independent director. Both appointments are thought to be advanced but still require FSA approval.
Sir Howard was chairman of the FSA between 1997 and 2003. He is also director of the London School of Economics and sits on the Morgan Stanley.
Mr Manduca is senior independent director at supermarket retailer WM Morrison, where he played a significant role in the recruitment of Dalton Philips, who succeeded Marc Bolland as its chief executive in March.
Neither appointment is thought to be directly linked to Prudential’s failure to complete the AIA takeover, which collapsed in June following a a shareholder revolt. Last year, Prudential said it planned to recruit two new non-executive directors after Sir Win Bischoff stepped down from its board to become chairman of Lloyds Banking Group. James Ross is expected to retire next year.
Despite this, the news – which was first reported on Sky News – is likely to appease some shareholders who have called for changes to Prudential’s board. Tidjane Thiam, the insurer’s chief executive, and Harvey McGrath, its chairman, have been heavily criticised ever since the failed AIA deal left investors with a £377m bill.
Both men remain in their jobs and were boosted by the company’s interim results in August when the insurer posted a pre-tax profit of £604m in the six months ending June 30, reversing a £155m loss last time round. Earlier this week, analysts at Bank of America Merrill Lynch added that Prudential shares were likely to strengthen given the value of its south-east Asian businesss.
Prudential declined to comment.
Source : Telegraph
