UK - Bob Mendelsohn, chief executive of Royal & Sun Alliance, has quit the troubled insurer with a £1m-plus pay-off.
Last month R&SA was fined a record £1.35m by the Financial Services Authority for a pensions mis-selling blunder. The firm also slashed around 1,200 jobs, and said it was considering a rights issue due to a lack of capital. R&SA also saw its shares nosedive 22% for the first time in around 17 years.
Bob Gunn, currently group chief operating officer, will take over the role pending a permanent appointment. A search involving both internal and external candidates is under way.
In a statement chairman Sir Patrick Gillam said Mendelsohn had “led [R&SA] through difficult times for the insurance industry.”
Sir Patrick added: In order to exploit the work to date, it is the board's view that the interests of the group will be best served by a change in the top management.
The statement also said that Mendelsohn’s compensation was in line with his contract which has a two year notice period but with compensation capped at 18 months. The firm will issue details of a potential rights issues no later than its third quarter results on November 7.
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