Ousted Pru chief 'set for £1.8m payoff'
The ousted chief executive of insurance giant Prudential is set to receive a payoff of up to £1.8m (€2.6m), it was reported today.
Jonathan Bloomer, who was forced to quit in a surprise move last week, will be given his expected 2005 salary of more than £850,000 (€1.2m) as well as a potential bonus thought to be worth at least £500,000 (€722,000).
According to the Sunday Telegraph, other benefits and pension contributions could take the overall package to £1.8m (€2.6m), higher than the £1.5m (€2.2m) he is believed to have received last year.
Mr Bloomer was forced to quit after a turbulent six months that saw rifts develop between the Pru and its major investors.
Anger peaked when he shocked the City in October with plans to raise £1bn (€1.4bn) towards driving its UK business after failing to find a buyer for online bank Egg.
He is set to be replaced by HBOS finance director Mark Tucker, who will take over on May 6.
It is believed the insurer hammered out the terms of the payoff package on Thursday – the day of the announcement. Nobody from the company was available to comment on the pay deal today.
The Pru’s board is thought to be determined that the issue will not lead to a row with shareholders, meaning Mr Bloomer will only receive contractual benefits. He is not expected to be given a payout from a restricted share plan after shareholder return failed to meet the required level.
Last week’s move sent the company’s share price higher as investors looked forward to calmer relations and a possible change in strategy. Shares in Egg also advanced amid hopes that the business will now be sold.
A spokeswoman for the company later said Mr Bloomer was likely to receive a year’s pay, since he was on a 12-month contract. However, she was unable to comment on the bonuses and benefits he is set to receive.
