Prudential Financial Board OKs Nonbinding Say On Pay Holder Vote

Prudential Financial Inc.'s (PRU) board approved a nonbinding shareholder vote on executive compensation, which the company said was approved due to shareholders' push to have a say on pay.

The life insurance firm said the change would become effective at the company's annual meeting in 2010.

Under the plan, Prudential's shareholders will be able to cast an advisory vote on the overall executive policies and procedures employed by the compensation committee for Prudential's named executive officers each year.

Calls for restrictions or tighter control on executives' pay grew internationally as the world's economies were pinched by the global recession. The U.S. government, as well as some governments abroad, have been especially critical of the financial industry's compensation in light of last year's bailouts, but Prudential itself hasn't been a target of those attacks.

In August, the company's financial-services business reported a 4.9% drop in second-quarter earnings, ending a streak of three quarterly losses, as profit smashed Wall Street expectations.

Prudential's shares were up 1% to $50.29 in late trading. The stock is up almost two-thirds this year.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail];