Clementi set to take charge at Pru

PRUDENTIAL will next month name David Clementi, deputy governor of the Bank of England, as its new chairman. He will replace Sir Roger Hurn, who stepped down in April, fearing his involvement as former chairman of the troubled telecoms group Marconi would make him a liability for the insurance giant.

The appointment of someone with Clementi's financial pedigree is designed to settle City nerves about the group, which has had a turbulent year. Shortly after Hurn's resignation, Prudential was forced to climb down on a controversial executive pay scheme that could have given its chief executive, Jonathan Bloomer, a package worth about £18m over three years. About a quarter of the company's shareholders threatened to vote against the pay scheme, though Prudential said it had consulted its investors widely.

The company was criticised last year when its bid for US insurer American General lost out to a rival offer. The Pru was paid a £420m 'break fee'. But some investors were concerned that the company had not been entirely open about its strategy - it needed to secure the deal to generate cash funding for its rapidly growing Asian businesses.

Bloomer has dismissed the setbacks but is keen to see someone of stature take over as chairman. Clementi will be available to join later in the summer. Previously chief executive of investment bank Dresdner Kleinwort Benson, he has unusually decided to serve only one term at the Bank. He is reported to be keen to get back to the corporate mainstream.

Last week Prudential unveiled another shake-up of its top management in an effort to improve its UK business under the recently appointed Mark Wood.