Prudential chief executive under pressure
Tidjane Thiam is under growing pressure today as more and more institutional shareholders in Prudential join the call for management changes. The unrest among shareholders is related to the collapse of the USD35.5 billion bid for the Asian assets of AIG which the Prudential management committed to a few weeks ago. However, the bid collapsed earlier this month and the company has taken a £450 million hit in relation to costs and a termination penalty.
The National Association of Pension Funds, which speaks for around 12% of the overall London stock market, has arranged a meeting with the Prudential management on 22 June at which a "broad shakeup of the board" will be disclosed. It is unclear at this moment in time whether they will call for the head of the chief executive but there is growing unrest about the cost of the failed AIG acquisition and the way in which it was handled.
Despite the fact that both the chief executive and chairman received votes of confidence from fellow directors after Monday's AGM it would appear that the battle to retain their positions is only just beginning. The fallout from the failed acquisition could eventually take the heads of the chief executive and chairman of the Prudential.
Share this..
Related stories
Gordon Brown forced to reconsider national insurance rise in 2011
Gordon Brown is tonight under serious pressure from backbenchers to reconsider the 0.5% increase in National Insurance which he intends to implement in 2011. The move is forecast to increase costs to UK business by something in the region of £2.65 billion and severely dent industries ability to bounce back from the ongoing recession. While 2011 may seem some time away, the ongoing UK recession is...
Read MoreBenefits still available on cheap insurance policies
Such is the healthy competitive state of the car and home insurance markets at present, that inexpensive policies can be found containing benefits for the holder, one industry figure has claimed.Head of research at moneysupermarket, Peter Gerrard, has highlighted the end of the big companies' domination, with insurers vying to offer the customer the best deals and recommended scouring the market f...
Read MoreUK government announces £20 billion loan insurance package
As we suggested yesterday, the UK government has today revealed plans for a £20 billion loan insurance package for small businesses. The move will see the government effectively guarantee loans to businesses, from the banks, which will take away the risk of default on the side of UK banks. However, interestingly the scheme has received mixed approval in the marketplace with many suggesting it is...
Read MoreWork At Home Population Warned On Insurance
As we prepare for National Working At Home Day, Lloyds TSB Insurance has taken the opportunity to warn the growing band of work at home entrepreneurs that they need to ensure they have the correct insurance in place. It seems that the growth in the use and availability of the internet has induced a massive increase in the numbers who work from home. Unfortunately, while very often it may only...
Read MoreThe long-term cost of DIY
As more and more people in UK decide to stay put in their current homes until the market improves we are starting to see significant interest in the DIY market. However, research by Sainsbury's Home Insurance has shown up significant concerns which homeowners need to address if they are looking to go down the DIY route. It appears as though many people in the UK are carrying out DIY work in high r...
Read More