02 Jun 2015
Section 430(2B) Companies Act 2006 Statement
The following information is provided in accordance with section 430(2B) of the Companies Act 2006.
The Group Remuneration Committee has approved the arrangements below which are in line with the Directors’ Remuneration Policy that was approved by shareholders in 2014.
Tidjane Thiam
As previously announced, Tidjane Thiam resigned as Group Chief Executive and as an Executive Director of Prudential plc with effect from 31 May 2015. His employment with the Company ended on this date.
Salary and benefits
Upon leaving employment, Mr Thiam’s salary and pension benefits will cease immediately. Medical and life assurance benefits will, for administrative reasons, end shortly after the termination date.
Incentives
Mr Thiam’s unvested awards under the Prudential Annual Incentive Plan (“AIP”) and the Prudential Long-Term Incentive Plan (“PLTIP”) will be treated in line with the rules of these plans.
Under the AIP, deferred shares awarded in 2013 (plus dividend equivalents) will be released shortly. The 2014 award and the 2015 award (in both cases plus dividend equivalents) will be released on the original timetable and remain subject to malus provisions.
The original performance conditions will continue to apply to outstanding PLTIP awards and they will be subject to time pro-rating:
• Shares awarded under the PLTIP in 2013 will be pro-rated for time served and will vest (plus dividend equivalents) to the extent performance conditions are satisfied in Spring 2016;
• Shares awarded under the PLTIP in 2014 will be pro-rated for time served and will vest (plus dividend equivalents) to the extent performance conditions are satisfied in Spring 2017.
Mr Thiam will receive a 2015 bonus calculated at the “on-target” level and pro-rated for service (£703,857) and 40% of this award will be deferred into shares which will be released in Spring 2019. This award will be subject to malus and clawback provisions. Mr Thiam will not receive a PLTIP award in 2015 or any subsequent year.
Outstanding awards under the Share Incentive Plan and Savings Related Share Option Scheme will be dealt with in accordance with the rules of the plans.
Pierre-Olivier Bouée
As previously announced, Pierre-Olivier Bouée resigned as an Executive Director of Prudential plc with effect from 31 May 2015.
Salary and benefits
Upon leaving employment, Mr Bouée’s salary and benefits will cease immediately.
Incentives
Mr Bouée’s unvested awards under the Prudential Annual Incentive Plan (“AIP”), the Group Deferred Bonus Plan (“GDBP”) and the Prudential Long-Term Incentive Plan (“PLTIP”) will be treated in line with the rules of these plans.
Deferred shares awarded under the GDBP in 2013 (plus dividend equivalents) will be released according to the original timetable. Shares deferred under the AIP in 2014 and 2015 (in both cases plus dividend equivalents) will be released on the original timetable. These awards remain subject to malus provisions.
The original performance conditions will continue to apply to the following outstanding PLTIP awards and they will be subject to time pro-rating:
• Shares awarded under the PLTIP in 2013 will be pro-rated for time served and will vest (plus dividend equivalents) to the extent performance conditions are satisfied in Spring 2016;
• Shares awarded under the PLTIP in 2014 will be pro-rated for time served and will vest (plus dividend equivalents) to the extent performance conditions are satisfied in Spring 2017.
The PLTIP award made on 31 March 2015 will lapse and Mr Bouée will not be paid a bonus for 2015.
Outstanding awards under the Share Incentive Plan and Savings Related Share Option Scheme will be dealt with in accordance with the rules of the plans.
Further details will be included in Prudential’s 2015 Annual Report which will be published in Spring 2016.