Legal & General Group Plc - Director Responsibilities and Compensation Arrangements
On 17 June 2013, Legal & General Group Plc ("Legal & General" or "the Company") announced the appointment of Mark Gregory as Group Chief Financial Officer and organisational changes to reflect the Company's ongoing strategic evolution. A smaller, closely aligned executive team creates the right dynamic, optimising board efficiency and effectiveness to deliver Legal & General's strategy.
On 1 July 2013:
- Mark Gregory assumes the role of Group Chief Financial Officer.
- John Pollock (Chief Executive Officer (Legal & General Assurance Society)) assumes responsibility for the Savings business division and will now lead an integrated protection and savings business of over seven million customers, c.6,000 employees and assets under administration (AUA) of c.£100bn*.
- Mark Zinkula (Chief Executive Officer (LGIM)) will assume responsibility for the unit trust business of Legal & General Investments, which will become part of LGIM, one of Europe's largest institutional asset managers and a major global investor. With £12bn of core retail assets, the strategic evolution of the unit trust business will benefit fully from LGIM's expertise and scale.
To reflect their expanded responsibilities for the delivery of the Group's growth strategy through the five key areas of LGIM International Expansion, Retirement Solutions, Digital Solutions, Protection and Direct Investments, the base salaries of Mark Gregory, John Pollock and Mark Zinkula will be increased. It was agreed on Nigel Wilson's appointment as Group Chief Executive in June 2012 that his base salary would be unchanged until March 2014 when he will have spent 20 months in the role. There is no change currently proposed to variable remuneration arrangements.
The base pay for each of the executive directors will increase from £461,250 to £560,000 to reflect their increased responsibilities with effect from 1 July 2013.
The principles of our remuneration policy are:
- we aim for overall remuneration to be competitively positioned around the mid-market range in relation to the FTSE 100 with particular regard to insurers and other financial institutions;
- the level of base salary is commensurate with responsibilities;
- variable remuneration is aligned with delivering superior returns to shareholders.
End
About Legal & General
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £10.1bn and is responsible for investing £441bn worldwide (as at 31 March 2013) on behalf of investors, policyholders and shareholders. Our Savings business has c.£100bn* AUA and total UK Protection gross premiums were £1.6bn in 2012. We have over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and almost one million customers in the US who rely on us for life assurance.
In 2012, Legal & General's profits before tax (on the IFRS basis) were £1.1bn, earnings per share were 13.9p and dividends per share 7.65p for the period, an increase of 9%, 12% and 20% respectively.
Biographies
Mark Gregory
Mark Gregory was appointed as Group Chief Financial Officer on 1 July 2013. Mark joined Legal & General in 1998 from Asda Group Plc where he held both senior finance and business development roles. He has undertaken a variety of divisional finance and business director roles at Legal & General including Financial Director (Retail), Group Financial Controller, Communications and Resources Director, Resources and International Director, UK Services Operations Director and Managing Director of With Profits. Mark was appointed as Chief Executive Officer of the Savings business and a director of the Board in January 2009. Mark is a qualified chartered accountant.
John Pollock
John was previously Chief Executive Officer of the Protection and Annuities business and was appointed to the Board in December 2003, having joined Legal & General in 1980. John's former roles include: Director, UK Operations; Managing Director, Legal & General Asia and various posts in Customer Services and IT.
Mark Zinkula
Mark Zinkula was appointed Chief Executive Officer of LGIM in March 2011 and a member of the Board in September 2012. Prior to that, he was CEO of Legal & General Investment Management America (LGIMA) since 2008 and played an integral part in the establishment and successful expansion of LGIMA. Prior to joining LGIMA, Mark was at Aegon Asset Management where he was Global Head of Fixed Income.
*Proforma AUA at 31 March 2013
ENQUIRIES
INVESTORS:
Kate Vennell Head of Investor Relations 020 3124 2150
MEDIA:
John Godfrey Group Communications Director 020 3124 2090
Richard King Head of Media Relations 020 3124 2095
Andrew Grant Tulchan Communications 020 7353 4200
FORWARD LOOKING STATEMENTS
This document may contain certain forward-looking statements relating to Legal & General Group, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature forward looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General's control, including, among others, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisition or combinations within relevant industries. As a result, Legal & General Group's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General Group Plc does not undertake to update forward-looking statements contained in this document or any other forward-looking statement it may make.
