OUTLOOK : A nasty stain on a whiter-than-white image
Wednesday 25 January 1995
No one would have believed it, to judge by events. Whatever the rights and wrongs of it, what is now emerging amounts to a public relations disaster of monumental proportions. If there was ever a business founded on, and fed by, good PR, the Pru is it. To sell its products the Pru needs to be seen as whiter than white. As an investment company that has done as much as anyone to push the case for adequate standards of corporate governance, it also has to be seen to be practising what it preaches.
To have your chief executive resign amid allegations of a breach of Stock Exchange rules is only the half of it. It now transpires that despite repeated and very public denials of any suggestion of mis-selling, the Pru is lambasted in a Lautro report forjust such in the area of personal pensions. Within months it faces disciplinary action over the affair.
Your can argue until the cows come home about whether Mick Newmarch's sale of share options just ahead of two important announcements affecting the company was a breach of the rules. Even if the company knew the rules and thought Mr Newmarch within them,it was foolish in the extreme to allow him to go ahead. It must have known how it would look. Sir Brian Corby, chairman, apparently cleared the transaction, so he should take at least some of the blame.
There is, of course, a very respectable case for arguing that many of the rules governing share and option dealing by directors are a lot of unnecessary bureaucratic nonsense. But it is one thing to think that, another to say it and quite another still to jeopardise reputation by even coming close to a breach.
Mr Newmarch has always been a man not afraid to speak his mind, an iconoclast ready to challenge accepted wisdoms. Unfortunately for him,, life assurance does not thrive on the unconventional approach. It could take years for the Pru to rebuild reputation.
- 1 Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 The secret report that helps Israel hide facts
- 5 Now diplomacy has failed, boycotting Israel might be the only way we can protect the people of Gaza
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
Kelsey Grammer forgives the man who raped and murdered his sister in 1975
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...