Released 11:00 18-Sep-2012
Legal & General Group Plc Board announces the appointment of Mark Zinkula as a Group Executive Director.
Legal & General Group Plc ("Legal & General" or "the Company") is pleased to announce the appointment of Mark Zinkula, the Chief Executive Officer of Legal & General Investment Management ("LGIM"), as a Group Executive Director of the Company with immediate effect.
LGIM, the Group's asset management business, is one of the Group's core businesses. LGIM is one of the UK's largest investment management companies, with £381bn funds under management. Around 80% of LGIM's funds are managed for external parties including pension funds, sovereign wealth funds and other institutions.
Liability Driven Investment (LDI) and Active Fixed Income in both the UK and more recently the US have been big growth areas for LGIM. LDI funds under management are now at £61bn, while active fixed income has grown to £77.2bn.
As LGIM continues its expansion into international markets and becomes an even bigger part of the Group, the Board believes it will greatly benefit from closer interaction with the LGIM business and from the asset management expertise that Mark will bring to the Board.
John Stewart, Chairman of Legal & General, commented:
"I am delighted that Mark is joining the Board. As LGIM continues to build on its successes and expand internationally, Mark's insight and experience will be a valuable addition to the Board."
About Legal & General
Legal & General is a leading provider of risk, savings and investment management products in the UK. Established in 1836, the Group is responsible for investing £381 billion worldwide (as at 30 June 2012) on behalf of investors, policyholders and shareholders. In the first six months of 2012, Legal & General's profits before tax (on the IFRS basis) were £525m, up 11% from the prior year. Earnings per share were 6.96p and dividends per share were 1.96p for the period, an increase of 14% and 18%, respectively. The Group has over seven million customers in the UK for life assurance, pensions, investments and general insurance plans. As well as expanding its Investment management business in the US, Europe and Asia, the Group's international business includes its fast-growing U.S. protection business, LGA, which in the first half of 2012 delivered gross premiums of $456m, up 13% on the prior year.
Mark Zinkula was appointed Chief Executive Officer of LGIM in March 2011. 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.
There is no information about Mark Zinkula that requires disclosure under Listing Rule 9.6.13(2) - (6).
Key Compensation Arrangements
Mark's salary as an Executive Director is £450,000, and he is eligible for an annual bonus of up to 175% of base salary for the remainder of 2012. A percentage of the bonus will be deferred for 3 years and awarded in shares. In accordance with all Executive Directors, Mark will participate in the Company's Performance Share Plan, with a maximum award potential of 200% of his base salary. Long term incentive plan awards vest subject to meeting performance conditions at the relevant date.
To support Mark and his family in relocating to the UK in 2011 to take up the position of LGIM CEO, the Company provides Mark with relocation related assistance for housing, school fees in order to maintain his four children in the American education system and economy flights home. The company pays these expenses direct rather than by way of a cash allowance to Mark. The current costs are approximately £375,000 pa but will reduce in 2013 and 2014 when his children begin reaching school leaver age and his housing contribution goes down. On appointment as LGIM CEO, Mark received an award of 364,203 shares under the Company's Share Bonus Plan and these remain unaffected by his appointment to the Board.
Mark's remuneration will be reviewed in light of emerging best practice and any changes that result from the Department for Business, Innovation and Skills' consultation papers.
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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.