Prudential CEO's 2008 Compensation Was $14 Million (Update1)

By Andrew Frye
Bloomberg News
March 20, 2009

March 20 (Bloomberg) -- Prudential Financial Inc., the second-largest U.S. life insurer, said John Strangfeld's compensation rose to $14 million last year, his first as chief executive officer, as the company's stock plunged 67 percent.

Strangfeld, promoted to CEO from vice chairman at the beginning of last year, was awarded a package of $10.1 million in 2007, the Newark, New Jersey-based insurer said today in a regulatory filing. Prudential's previous CEO, Arthur Ryan, had compensation of $22.2 million in 2007.

Prudential reported a $1.1 billion net loss in 2008, its biggest deficit in eight years as a public company, after a decline in stock investments forced the company to set aside more money to pay guaranteed returns on savings products called variable annuities. Life insurers reported a $32 billion decline in statutory capital last year amid the costs tied to annuities and investment losses.

Prudential slipped $1.17, or 6.2 percent, to $17.59 at 1:23 p.m. in New York Stock Exchange composite trading. The insurer has dropped 77 percent in the last 12 months, while MetLife Inc., the biggest U.S. life insurer, fell 66 percent.

Strangfeld's salary advanced 62 percent to $970,769, while his bonus slipped 25 percent to $3.3 million. Stock awards fell 83 percent to $474,776. The compensation increase was caused mostly by a $5.3 million gain in his pension value after he became eligible for retirement. A year earlier the pension gain was about $730,000.

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