McGrath to succeed Clementi as chairman of Prudential

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The Independent Online

The UK insurer Prudential unveiled the former Man Group boss Harvey McGrath as its next chairman yesterday, replacing Sir David Clementi, who is to step down after six years on the board in January.

Mr McGrath, who was chief executive of the investment group between 1990 and 2000, and subsequently chairman until last year – will join the Prudential board as a non-executive director at the start of next month, succeeding Sir David at the head of the board in the New Year. As well as a long and distinguished career with Man, Mr McGrath is also chairman of the London Development Agency and vice-chairman of the London Skills and Employment Board.

In his new position, he will command a salary of £500,000, fixed for the three years, and will have a notice period of 12 months. He said: "I am excited at the prospect of joining Prudential. The company has a rare combination of both a proud heritage and an extremely exciting future. The financial performance of the company over the past three years has been strong, and differentiated from its competitors by its broad geographic reach, particularly its exposure to Asia, product expertise and the strength of the leadership team built under group chief executive, Mark Tucker. Sir David Clementi has done an outstanding job of steering the company through this significant progress over the past six years."

Sir David Clementi added: "[Harvey's] record of achievement in the international financial services arena is exceptional and his leadership skills are clear. I have served six years as chairman of Prudential, a period of considerable change, real internationalisation of the business and rapid development of our management capability, and leave the company in strong shape."

Sir David oversaw one of the most unstable chapters in Prudential's history, during which he helped oust the former chief executive Jonathan Bloomer, shortly after he had launched a surprise £1bn rights issue. Shortly afterwards, the board found itself fighting off an opportunistic bid from its main UK rival Aviva.

More recently, the company had been exploring whether to try to unlock some or all of its £8.7bn inherited estate. But it ditched the plans earlier this summer.

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