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Chairpersons

Equitable Life Chairman and CEO Face Resignation Calls

Strategic Insights

— 1 min read

Vanni Treves and Charles Thomson, chairman and chief executive of Equitable Life respectively, are facing increasing pressure to resign as a leading policyholder group, Equitable Members'Action Group (EMAG), seeks to force an extraordinary meeting to vote on their no-confidence motion. The move follows Equitable's decision to abandon its £700m High Court negligence claim against former auditor Ernst & Young. Meanwhile, Treves is reported to be preparing to step down at the end of 2006 as part of a plan to disband the current board.

Key Takeaways:

  • Equitable Members'Action Group (EMAG) is seeking to force an extraordinary meeting to vote on a no-confidence motion against Vanni Treves and Charles Thomson.
  • EMAG's vice-chairman, John Newman, has called for an extraordinary meeting to ask policyholders to back a vote of no confidence in Treves and Thomson.
  • Treves is reported to be preparing to step down at the end of 2006 as part of a plan to disband the current board.
  • Equitable is continuing its £1.7bn claim against 15 former directors who are alleged to have acted negligently and breached their fiduciary duties.
  • The 15 former directors and their advisers are reported to be split on whether to settle the case, with many facing huge legal bills they may have to pay personally.
  • Equitable is expected to announce an increase in free capital from £547m to over £700m, as well as higher interim bonuses and a reduced penalty for investors who surrendered their policies.

Statistics:

  • £700m: Equitable's High Court negligence claim against Ernst & Young.
  • £1.7bn: Equitable's claim against 15 former directors.
  • 11%: The original penalty for investors who surrendered their policies, which is to be drastically reduced.
  • £1.5bn: The hole in Equitable's finances after the House of Lords ruled its strategy of cutting policy bonuses was unlawful.
  • £547m: Equitable's free capital at the end of last year.
  • £700m+: Equitable's expected free capital after the announcement.
  • 1000: The number of EMAG members needed to force Equitable into a no-confidence motion.

Sources:

  • Mail on Sunday: "Equitable in crisis as Treves stands down"
  • PA: "Equitable board in disarray as Treves and Thomson face no-confidence vote"

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