Dividend communication breakdown leads to departure
Legal & General is replacing its finance director Andrew Palmer after confusion over the insurer’s dividend payment upset the City, the Telegraph reports.
Palmer, L&G's finance director since 2001, will step down later this year. Sir Rob Margetts, L&G's chairman, is leading the process to replace him. Several external candidates have been approached and L&G is also thought to be considering promoting an internal candidate, the paper says.
Investors were already unhappy with the insurer over its level of disclosure on capital and reserving at the end of 2008.
Questioned by analysts, Palmer gave the impression that he favoured maintaining L&G’s dividend, which was later over-ruled by CEO Tim Breedon. L&G eventually cut its dividend by one third.
The Telegraph says Palmer, 54 told the board last year that he wanted to retire. He will stand for re-election at L&G's annual shareholder meeting in May, and will step down once a replacement is found.
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