Strangfeld to become Prudential chairman and CEO
30 Nov 2007
One of the largest US life insurers Prudential Financial said on Wednesday 28 November that its board had named vice chairman John Strangfeld as the company's chief executive and chairman.
Strangfeld, 53, currently heads Prudential's US businesses and was earlier chief of its investment division. He succeeds present chairman and chief executive Arthur Ryan, who will retire as CEO at the end of 2007 and as chairman in May 2008.
Strangfeld joined Prudential 30 years ago and strongly built up the company's investment division. Prudential had $637 billion in assets under management at the end of the third quarter, second only to MetLife.
Three other vice chairmen were in the race, but two others resigned or retired. That left Mark Grier, who leads Prudential''s international business, as the other candidate. Ryan said that both Grier and Strangfeld will head the office of the chairman.
The chairman has promised to announce his retirement plans by the end of 2007. Ryan''s salary and compensation in 2006 was $25.8 million, while Strangfeld''s was $11.4 million.
Ryan successfully handled a scandal at Prudential''s joint brokerage venture with Wachovia Corporation, paying $600 million to settle improper mutual fund charges with regulators in August 2006 and then bringing the unit to profitability.
Strangfeld is expected to face a different but equally difficult set of challenges. He is faced with a decline in the equity markets, uncertainty in fixed income, and the impact of a potential recession on Prudential clients'' wealth.