Prudential CEO left out of management talks

14 June 2010

Tidjane Thiam, chief executive officer (CEO) at Prudential, has not been invited to discussions over the future make up of the firm’s management, a newspaper report has claimed.

According to the Times, Harvey McGrath, chairman and James Ross, senior independent director, will be meeting with shareholders to discuss the future of the insurer’s management team - but without the CEO.

The news follows the collapse of the Prudential’s takeover bid for the AIA, the Asian unit of the American Independent Group.

Prudential is thought to have lost an estimated $450 million in fees following the failure of the $35.5 billion acquisition.

An unnamed shareholder at Prudential told the Times: “There needs to be management change at the Pru; that is increasingly clear.

“Harvey and Tidjane are joined at the hip, but they can’t both go at the same time. The question is how to effect this so that some stability can return post AIA.”

Robin Geffen, managing director of Neptune Investment Management, one of the Prudential’s major shareholders, has been one of the most vocal in his criticism of the firm’s management team following the failure of the bid.

Reports claim that Mr Tidjane is currently on holiday in Spain.

By Jim Ottewill

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