INSURANCE giant Prudential is set to hand its chief executive a £7 million bonus despite the firm being fined £30m by the regulator last week.
In one of its last acts of punishment meted out for regulatory failings, the Financial Services Authority (FSA) slapped one of the most significant penalties in its history on the Pru and censured its boss, Tidjane Thiam, over the group’s failed $35.5bn (about £23.3bn now) bid for its Asian rival AIA three years ago.
The watchdog, disbanded and replaced as of today, levied the fine on the insurer for keeping the potential tie-up a secret.
Meanwhile, it was reported yesterday that the Pru is set to give Thiam £5m in stock as part of its executive pay scheme, plus £2m in a deferred bonus.
It comes despite Thiam being the only FTSE 100 chief executive to have been publicly censured by the regulator.
He has led the company through a period where its share price has more than doubled. But it is thought the payouts could anger investors as companies are now meant to “claw back” bonuses from erring directors.