Feb. 6 (Bloomberg) — Prudential Financial Inc. is spending about $57 million to reward workers after topping Chief Executive Officer John Strangfeld's profitability goal last.
Prudential, the No. 2 U.S. life insurer, is distributing a one-time bonus of $1,300 to about 44,000 employees who don't usually get such payouts, said Bob DeFillippo, a company spokesman. The cost hurt fourth-quarter earnings by about 9 cents per share, Strangfeld said on a conference call with analysts today.
Prudential's adjusted return on equity in 2013 was 15.2 percent, beating Strangfeld's target of 13 percent to 14 percent. The Newark, New Jersey-based insurer didn't announce the payout when it reported earnings yesterday. Profit missed estimates by 3 cents a share, sending the stock lower and prompting remarks on the call about the lack of disclosure.
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