Pru scraps bonus plans

Europe

Executives of the UK’s largest life insurance company Prudential have bowed to shareholder pressure and have scrapped proposals for a bonus pay scheme. The proposal would have boosted salary packages by millions if key performance targets were fulfilled. Chief executive Jonathan Bloomer would have earned an additional £900,000 (US$1.3mn) this year to top up a salary of £660,000 and could have earned up to £4.6mn in three years’ time if Prudential outperformed a group of 30 international peers. Prudential shelved the plan after shareholders voiced their concern ahead of the group’s annual general meeting. Prudential said it expected the proposal to be passed in a vote of shareholders but said it had removed the motion from the AGM agenda in the interests of corporate governance.