MARK Tucker, the former chief executive of Prudential, has been awarded a performance-related bonus package worth £7.7m over the next two years in his new role as chief executive of Asian insurance business AIA.
Tucker is entitled to a bonus package worth $6.1m (£3.9m) per year for the next two years on top of his $900,000 annual salary.
A total of 13 per cent of the award for the first year will be paid in cash in March 2011, and again six months later with the remaining 74 per cent to be paid in shares.
However the award will be pro-rated to reflect the fact that Tucker has only been chief executive of AIA since July.
The following year will see the award paid in a similar fashion. He will also receive a number of restricted AIA shares which can be awarded at the company’s discretion.
The details of Tucker’s remuneration package are buried in an appendix at the back of AIA’s float prospectus. The Asian unit of US insurance giant AIG floated on the Hong Kong stock market on Friday with a valuation of $30.5bn.
AIA was forced to reconsider a flotation after a failed attempt to buy the insurer led by Prudential’s new chief executive Tidjane Thiam for $35.5bn earlier this year.
Tucker, who was replaced by Thiam at Prudential, had led an even earlier attempt to buy AIA before being joining the company.
The listing of AIA raised more than $20bn for the US Treasury, which still owns a majority stake in AIG.
One of the principal reasons behind the listing has been AIG’s desire to repay US taxpayers who bailed it out during the global financial crisis in 2008.