08 Jan 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 12 October 2018, the Company announced that Barry Stowe had decided to retire as Chairman and Chief Executive Officer of its North American Business Unit and as an Executive Director of Prudential plc on 31 December 2018.
He will remain as an adviser to the Group until his employment ends on 31 December 2019. Remuneration arrangements in respect of his departure have been determined by the Group Remuneration Committee in line with the Prudential Directors’ Remuneration Policy approved by shareholders at the AGM in May 2017. Further details will be included in Prudential’s 2018 Annual Report, to be published in the Spring of 2019.
Salary, pension and benefits
Mr Stowe’s salary, pension and certain benefits will continue to be paid or provided, on the same basis as at present, until the end of his employment.
Mr Stowe’s unvested awards over a total of 186,764 ADR’s under the Prudential deferred annual incentive plan (“AIP”) will be released on the original timetable. They remain subject to malus and clawback provisions and will continue to accumulate dividend equivalents until they are released.
Outstanding long-term incentive awards will vest in line with the original vesting dates, subject to satisfaction of the performance conditions under the plan rules. The 2017 and 2018 awards will be pro-rated up to the date on which Mr Stowe retired from the Board (i.e. 31 December 2018) while the 2016 award will not be pro-rated. These awards (totalling 253,268 ADRs) will continue to accumulate dividend equivalents until they are released and be subject to the original malus and clawback provisions. The 2017 and 2018 awards will remain subject to a two year holding period following the end of their three year performance periods.
Mr Stowe will receive an annual bonus for 2018 which will be determined based on performance achieved when the 2018 results are known. Sixty per cent of this award will be paid in cash in the usual way, and 40 per cent will be deferred into shares (to be released in the Spring of 2022). This award will be subject to malus and clawback provisions.
Mr Stowe will not receive a bonus for 2019 and he will not be made a long-term incentive award in 2019 or any subsequent year.