9th Apr 2020 12:41
(Alliance News) - Prudential PLC on Thursday said it will cut pay package of executive directors and will not increase incentives for senior managers in light of the "current situation and the need for continued restraint in executive remuneration".
Shares in the company were down 1.1% at 1,032.50 pence each in London.
The FTSE 100-listed insurer will reduce salaries of executive directors back to their level on December 31, with effect from the start of April. Pension benefits of executive directors will be cut to 13% of salary from the current 25% with effect from May 14.
Furthermore, the company said the 2020 incentive plan for Chief Financial Officer & Chief Operating Officer Mark FitzPatrick will be maintained at 250% and will no longer increase to 300% of salary.
"While the full impact of Covid-19 is still emerging, Prudential has a highly resilient business model and remains well placed to support its customers and distribution partners, and deliver profitable growth for its shareholders," the company said.
Earlier on Thursday, Prudential priced a USD1.00 billion notes offering. The senior unsecured notes carry a 3.125% interest rate and are due in 2030.
By Tapan Panchal; [email protected]
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