Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

Continue Reading

Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

Continue Reading

Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

Continue Reading

Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

Continue Reading

Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Categorized | Insurance

Willis Towers Watson executive to get $21m pay-off


Posted on November 22, 2016

A top executive at Willis Towers Watson is to receive a pay-off of up to $21m when he leaves the insurance broker and consultant at the end of the year, according to documents analysed by the Financial Times.

The payment to Dominic Casserley, the deputy chief executive, comes at the end of a year when shares in Willis Towers Watson have sharply underperformed those of its two main rivals.

The company said last month that Mr Casserley, who headed insurance broker Willis before it merged with Towers Watson at the start of this year, would leave when his contract expires at the end of 2016.

According to company filings, non-renewal of Mr Casserley’s contract will trigger a cash payment of about $8m and share-based awards worth about $13m. He will also qualify for about $200,000 of other benefits.

“In my experience this is a generous payment for the insurance sector,” said Jo Keddie, a partner specialising in employment at London law firm Winckworth Sherwood.

Willis Towers Watson declined to comment on Mr Casserley’s pay.

Caroline Doran Millett, an employment partner at law firm Royds Withy King, said that the documents showed that Mr Casserley was due to receive the payments but criticised the language used by the company as “unhelpful and opaque”.

Willis Towers Watson was formed out of the $17bn merger of Willis, an insurance broker, and Towers Watson, a pensions and healthcare adviser.

Mr Casserley was chief executive of Willis and stayed on with the title of president and deputy chief executive. He received a salary of $1m per year as well as bonuses. When his departure was announced, Willis Towers Watson chairman Jim McCann said that Mr Casserley, who co-led the integration process, was “crucial to the design, negotiation and success of the Willis Towers Watson merger”.

“On behalf of both the legacy Willis board and the current Willis Towers Watson board, I want to thank Dominic for his many contributions, which will benefit the company and all its stakeholders for years to come,” he said.

Shares in Willis Towers Watson, which is based in London but listed in New York, have fallen by just under 4 per cent since the merger was completed. Shares in rivals Aon and Marsh & McLennan have both risen more than 20 per cent in the same period.

The company reported a net loss of $32m for the three months to the end of September against a pro-forma profit of $117m in the same period a year ago although an amortisation charge was responsible for much of the change.