21 May 2019

Section 430(2B) Companies Act 2006 Statement

The following information is provided in accordance with section 430(2B) of the Companies Act 2006. 

On 28 February 2019, the Company announced that John Foley, Chief Executive of M&GPrudential, Nic Nicandrou, Chief Executive of Prudential Corporation Asia, and Michael Falcon, Chairman and Chief Executive Officer of Jackson Holdings LLC, would step down as Executive Directors of Prudential plc at the end of the Annual General Meeting (AGM) on 16 May 2019 as part of our progress towards the demerger of M&GPrudential.

They will remain in their executive roles and will continue to be members of the Group Executive Committee. Remuneration arrangements in respect of their departure have been determined by the Group Remuneration Committee in line with the Prudential plc Directors’ Remuneration Policy approved by shareholders at the AGM in May 2017. They will not receive any loss of office payment in respect of their service as Executive Directors.

Salary, pension and benefits
Salary, pension and benefits will continue to be paid to the executives as they will remain members of the Group Executive Committee after they leave the Board. 

Incentives
We currently anticipate that all unvested awards under the Prudential deferred Annual Incentive Plan will be released on the original timetable and remain subject to malus and clawback provisions.

We expect that outstanding long-term incentive awards will vest in line with the original vesting dates, subject to the satisfaction of the original performance conditions. These awards will also continue to be subject to the original malus and clawback provisions, and awards will remain subject to a two year holding period following the end of the three year performance period.

Annual incentives will continue to be paid to the executives for 2019 as they will remain members of the Group Executive Committee after they leave the Board. These awards will be determined on performance achieved when the 2019 results are known. Sixty per cent of awards will be paid in cash in the usual way, and 40 per cent will be deferred into Prudential plc shares or ADRs (to be released in the Spring of 2023). In addition, Michael Falcon is eligible to receive a 10 per cent share of the Jackson bonus pool. These awards will continue to be subject to malus and clawback provisions. 

Messrs Foley, Nicandrou and Falcon were subject to the same shareholding guidelines as other Executive Directors of 250 per cent of salary up to 16 May 2019. The Company’s shareholding guidelines that apply to members of the Group Executive Committee will apply to these executives from 17 May 2019.

The terms of Mr Falcon’s buy-out awards as disclosed in the 2018 Directors’ remuneration report have not been changed and his replacement awards will vest in line with the original vesting schedule.

Details of remuneration earned in respect of their service on the Prudential Plc Board will be provided, in line with UK reporting regulations, in the 2019 Directors’ remuneration report to be published in the Spring of 2020.

Jackson National Life Insurance Company

Prudential

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Prudential

If you are looking for an affiliate of Prudential Financial, Inc, whose principal place of business is in the United States of America.

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Prudential plc is an international company incorporated in the United Kingdom, and its affiliated companies constitute one of the world’s leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world, and it has been in existence for over 170 years. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America, or the Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the United Kingdom).

PPM America

Prudential

You are about to enter the website of our US affiliate PPM America, an indirect subsidiary of Prudential plc of the United Kingdom.

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Prudential

If you are looking for an affiliate of Prudential Financial, Inc, whose principal place of business is in the United States of America.

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Prudential plc is an international company incorporated in the United Kingdom, and its affiliated companies constitute one of the world’s leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world, and it has been in existence for over 170 years. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America, or the Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the United Kingdom).

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For M&G and Prudential UK customers and policyholders:

In October 2019, Prudential plc separated its UK operations and, as a result of this separation, Prudential UK is now owned by M&G plc. The M&G plc group is a separate, independent group and as such we are not able to help any M&G or Prudential UK customers or policyholders.

Therefore, to find the best way to make contact, please visit www.pru.co.uk/contact-us

For further information on the M&G plc group, please visit the M&G website: www.mandg.com