Prudential chief financial officer (CFO) James Turner resigned on Wednesday, May 31, during an investigation into a code of conduct concerning a recent recruiting scenario. The insurer said Turner had failed to meet the company's expectations.
Prudential's CFO Transition
Based in Hong Kong and in the position for a little over a year, Turner is being replaced by Ben Bulmer, the CFO of Prudential's insurance and asset management division. Yet, Turner will be available to the firm for the next four months.
In a report by Financial Times, Prudential said that the company "sets itself high standards, and Mr. Turner fell short on this occasion. It did not, however, provide any specifics about the recruiting scenario.
The firm also noted that Turner would not earn any future incentive payments he was entitled to at this time.
According to a source familiar with the case, Prudential hired an independent law firm this year to examine Turner's behavior after warning signs were raised via the company's internal systems. Turner has served as the top risk and compliance officer at Prudential.
On Wednesday, employees received an email from Prudential's CEO, Anil Wadhwani, stating that "our code of conduct sets out that we expect all our colleagues to adhere to the highest professional standards and [behaviors]." Notably, Wadhwani assumed his position only in late February.
CEO Wadhwani said in a statement that new CFO Bulmer, who has been with the company since 1997, is a seasoned financial leader with an in-depth familiarity with its operations and the areas in which it operates.
While Prudential is headquartered in the UK and is publicly traded on both the London Stock Exchange and the Hong Kong Stock Exchange, its top executives are now based in Hong Kong, and the company does the vast majority of its business in Asia.
The Firm Under Ex-CEO Mike Wells
Turner's departure comes only a few months after Wadhwani was hired as Prudential's new CEO in late February, replacing seasoned CEO Mike Wells.
Under Wells, Prudential sold off its UK and European retirement business in 2019 and its US retirement division in 2021, as South China Morning Post reported.
In September 2022, the firm was listed on the Hang Seng Composite Index, allowing mainland Chinese investors to trade its shares.
After a $2.81 billion loss in 2021, Prudential earned US$1 billion in 2022. The insurer reported a 318% year-over-year increase in Hong Kong annual premium equivalent (APE) sales in 2023's first quarter after the border between Hong Kong and mainland China reopened.
