James Moore: McGrath shouldered too much blame in AIA row

Outlook So it's cheerio to Harvey McGrath. It is a mark of the way Prudential has conducted itself that he is probably not the worst occupant of the top seat in the life insurer's boardroom during the past few decades. The Ulsterman's tenure as chairman has hardly been a happy one, however.

Mr McGrath made his name in the hedge-fund industry, turning Man Group into the world's biggest quoted hedge-fund manager. But while life insurance and hedge funds may fall under the banner of financial services they couldn't be more different.

At Man, Mr McGrath oversaw numerous deals as chief executive and then chairman, which were largely waved through with little comment.

But even shareholders at one of the more anonymous members of the FTSE 100 tend to expect more than the "you'll just have to trust us, this deal is great" approach that he and his colleagues adopted when they asked them to stump up billions for the purchase of asian insurer AIA from the US government.

It therefore came as little surprise that the deal blew up in their faces. But Mr McGrath has carried the can rather than his chief executive Tidjane Thiam. This isn't entirely fair. Mr McGrath hardly played a blinder, but nor did Mr Thiam. And it was the latter who stoked their opposition's fires by trying to take a second job at a French bank while the bid was in progress (although Mr McGrath might have intervened).

Ulstermen are not renowned for their willingness to back down from a fight, but the writing was on the wall after nearly a quarter of shareholders failed to back him at the last AGM. That might not sound like a lot, but chairmen are accustomed to getting the sort of support that Kim Jong-un could expect were he to hold a vote on his prospective leadership of North Korea.

It is worth noting, however, that Mr McGrath has quietly reshaped Prudential's board, adding a number of heavy hitters as those who voted in favour of the disastrous AIA adventure have departed.

Mr McGrath has acted as something of a lightning rod for Mr Thiam over the past couple of years, despite the fact that the latter was equally culpable for the AIA failure. Helped by some good work put in by his predecessor Mark Tucker (now ironically running AIA) Mr Thiam has kept shareholders happy by turning in some good results. But there won't be any easy shelter for him the next time a storm hits his company. Nor should there be.

News
Kenny Ireland, pictured in 2010.
peopleActor, from House of Cards and Benidorm, was 68
News
A scene from the video shows students mock rioting
newsEnd-of-year leaver's YouTube film features staging of a playground gun massacre
Travel
travel
Environment
View from the Llanberis Track to the mountain lake Llyn
Du’r Arddu
environmentA large chunk of Mount Snowdon, in north Wales, is up for sale
PROMOTED VIDEO
Voices
A family sit and enjoy a quiet train journey
voicesForcing us to overhear dull phone conversations is an offensive act, says Simon Kelner
News
i100This Instagram photo does not prove Russian army is in Ukraine
Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
News
Morrissey pictured in 2013
people
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
Life and Style
The director of Wall-E Andrew Stanton with Angus MacLane's Lego model
gadgetsDesign made in Pixar animator’s spare time could get retail release
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
Travel
travel
News
Robyn Lawley
people
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
people
News
i100  ... he was into holy war way before it was on trend
Arts and Entertainment
High-flyer: Chris Pratt in 'Guardians of the Galaxy'
filmThe film is surprisingly witty, but could do with taking itself more seriously, says Geoffrey Macnab
News
people
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In my grandfather's First World War footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during the war. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end