Executive directors at Prudential have announced they will take a cut in their pension benefits, from 25 per cent to 13 per cent of salary.

The reduction will apply to incumbent executive directors from 14 May 2020.

They will also take a reduction in their salaries to the level on 31 December 2019, though this will take effect from 1 April 2020.

The cuts are part of a broader package of changes proposed by the executive directors in response to the current Covid-19 crisis and the “need for continued restraint” in executive remuneration.

As part of this, the group chief financial officer and chief operating officer’s 2020 Prudential Long-Term Incentive Plan award will also be maintained at 250 percent, despite planned increases to 300 per cent of salary.

The board’s Remuneration Committee has accepted the proposals, and will operate the changes within the directors’ remuneration policy at the annual general meeting on 14 May 2020.

This also follows the The Royal Bank of Scotland's announcement that it has cancelled a dividend-linked contribution to its main UK pension scheme as a result of the Covid-19 pandemic.

Executive pensions have faced increased scrutiny since September 2019, with the Investment Association cracking down on companies that have failed to align executive pension pay with their workforce.

Share Story: