ref="http://www.cityam.com/people/tidjane-thiam">TIDJANE Thiam, the architect of the biggest M&A deal of the year so far, Prudential’s audacious £23.4bn takeover of the Asian assets of AIG, is in line for a remuneration package worth up to £5.22m if he delivers on the insurer’s performance targets.
Thiam could receive shares worth up to £2.7m as part of a long-term incentive plan, under a pay deal outlined in Prudential’s annual report yesterday. The incentive scheme is on top of his annual salary of £900,000 – hiked from £875,000 last year – and a discretionary bonus of up to £1.62m, of which half will be deferred.
Prudential will also top up Thiam’s pension pot by £225,000, a quarter of his salary, in line with company policy.
Bridget Macaskill, chair of the firm’s remuneration committee, said it was “mindful” of pay scrutiny, but added: “As our executive directors develop and demonstrate measurable success, we would expect to pay them at an appropriate level against their peers.”
In order to secure the full long term payout, Thiam will have to deliver shareholder returns at least a fifth higher than a benchmark group of rivals, including Aviva, Axa and ING.
Michael McLintock, chief executive of M&G, has also netted a 9.3 per cent salary hike this year to £350,000, in addition to a £1.75m bonus and £2.6m in long-term incentive shares.