Prudential top brass take coronavirus cuts to pay, pensions, bonuses

LONDON (Reuters) - Prudential PRU.L said on Thursday it would cut salaries and pensions earned by its executive directors in 2020, while its chief financial officer would also see his bonus curbed in view of the Covid-19 pandemic.

The British insurer is the latest in a series of financial firms to unveil similar reductions in executive compensation in a gesture of support to customers struck hard by the coronavirus lockdown.

Prudential said pension benefits would fall from 25% to 13% of salary from mid-May but did not give details on how salaries would fall.

A bonus payable to CFO Mark FitzPatrick under Prudential’s Long Term Incentive Plan award will also be maintained at 250%, rather than raised to 300% of salary as planned, the insurer added.

The company did not provide details on any changes to CEO Mike Wells’ bonus arrangements.

“While the full impact of Covid-19 is still emerging, Prudential has a highly resilient business model and remains well placed to support its customers and distribution partners, and deliver profitable growth for its shareholders,” the insurer said.

(This story corrects to show company did not provide details of CEO bonus arrangements, paragraph 5)

Reporting By Sinead Cruise; editing by Simon Jessop