Could the top man from the Pru be shown the door?
Friday 20 May 2011
The chairman of Prudential, Harvey McGrath, faced questions about his future yesterday after he suffered a shareholder revolt at the company's annual meeting.
In an unusual show of disapproval, 22 per cent of votes were cast against Mr McGrath's re-election to the board. Including abstentions, 27 per cent failed to support him. Mr McGrath bore the brunt of investors' anger for the British insurer's disastrous £22bn attempt to take over its Asian rival AIA last year. By contrast, his chief executive, Tidjane Thiam, received 99 per cent of votes in favour.
Mr Thiam was also vilified for his role in the failed takeover but he has since improved the Pru's operational performance, whereas Mr McGrath is still blamed for the board's failings in its conduct of the deal.
One fund manager who was critical of the deal said: "That is a large chunk of investors voting against and I think he is probably on borrowed time."
Mr McGrath said: "Getting the support of 80 per cent of the shareholders is a pretty good mandate and we will take it forward on that basis. The chairman becomes the lightning rod for shareholders' issues at large."
He told the meeting in London there was still "more work to be done" to repair relations with investors after the failure of the AIA approach, which cost the Pru £377m before tax, including a break fee and advisers' bills.
- 1 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 2 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...