1st May 2015 12:20
LONDON (Alliance News) - Prudential PLC Friday said it has appointed the head of its US subsidiary to succeed Tidjane Thiam, who is departing after about six years as the life insurer's chief executive to replace Brady Dougan as the CEO of Swiss bank Credit Suisse AG.
In a statement, Prudential said it is appointing Mike Wells, who has been the chief executive of its Jackson National Life Insurance Company since January 2011, to replace Thiam in June. US citizen Wells, aged 55, is already on Prudential's board of directors.
"Following a rigorous succession planning process, we have found a fitting and experienced successor to Tidjane in Mike Wells, who has extensive experience of life insurance and asset management. Under his leadership, Jackson's profit has doubled and its cash remittances increased to a record GBP415 million in 2014. This has all been achieved while continuing to take a disciplined approach to risk management," Chairman Paul Manduca said in a statement.
Wells' basic salary will be GBP1.1 million and his maximum bonus will be 200% of his salary, with 40% of that amount being deferred into shares. Long-term incentive awards will be 400% of his base salary. Prudential said it will "support" Wells' move to London from the US.
Jackson's operating profit increased by 15% to GBP1.43 billion in 2014, making it the single biggest generator of the group's GBP3.23 billion long-term business operating profit, ahead of the GBP1.05 billion recorded in Asia and the GBP752 million in the the UK.
The US life company, founded more than 50 years ago and bought by Prudential in 1986, is by far the biggest provider of variable annuities in the US, according to statistics from the LIMRA Secure Retirement Institute. Its long-term operating profit was GBP694 million in 2011, the first year of Well's tenure at the helm.
Wells acknowledged that Thiam is a tough act to follow. The outgoing chief executive is one of the most respected executives in the City and the company's shares fell by 3.1% on March 10, the day his departure was confirmed by the group, while Credit Suisse shares jumped.
"The group is in excellent shape, not least because of the remarkable leadership of my predecessor," Wells said.
The new chief executive joined Jackson in 1995 as the president of its marketing and distribution division. Prior to becoming the president and chief executive of Jackson in 2011, Wells was its vice chairman and chief operating officer. He has a Batchelor of Science from San Diego State University.
Prudential shares were down 0.5% at 1,621.50 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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