Jacques Chappuis
PRUDENTIAL FINANCIALAbout Jacques Chappuis
Jacques Chappuis is President and CEO of PGIM, Prudential’s $1.4 trillion global investment management business, effective May 1, 2025; he reports to Andrew Sullivan, Prudential’s CEO, as part of the firm’s leadership transition . He brings ~30 years of investment management experience, most recently as co‑head of Morgan Stanley Investment Management, where he led the integration of Eaton Vance; earlier roles include Carlyle (head of Investment Solutions), Citigroup (head of Alternative Investments), BCG, and Bankers Trust . Education disclosed: BS from Tulane University and MBA from Columbia Business School . Company performance context: Prudential’s 2024 TSR was 19% (1‑yr), 26% (3‑yr), 63% (5‑yr), with percentile ranks of 16%, 50%, and 49% vs the 20‑company compensation peer group . PGIM delivered “significant positive net flows” in 2024 across fixed income, equities, and diversified private alternatives .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Morgan Stanley Investment Management | Co‑Head; Morgan Stanley Management Committee | 2023–2024 | Led transformative integration of Eaton Vance into MSIM, expanded public/private multi‑asset solutions |
| Morgan Stanley Investment Management | Global Head of Distribution; Co‑Head of Solutions & Multi‑Asset | 2016–2023 | Built global distribution, scaled solutions/multi‑asset capabilities |
| The Carlyle Group | Head of Investment Solutions | 2013–2016 | Led solution platform (incl. AlpInvest), broadened alternatives offering |
| Citigroup Global Wealth Mgmt / Citigroup Alternative Investments | Head of Alternative Investments; Managing Director | Pre‑2006 | Built alternatives platform across proprietary and client solutions |
| Boston Consulting Group | Strategy Consultant | Prior | Financial services strategy advisory |
| Bankers Trust Company | Investment Banker (Corporate Finance) | Prior | Transaction execution and capital markets experience |
External Roles
No current public company directorships disclosed; PGIM/Prudential profile and press materials focus on executive roles .
Fixed Compensation
Not individually disclosed for Mr. Chappuis in public filings as of this writing. Prudential’s executive compensation framework emphasizes market‑competitive base salary and benefits as part of total compensation design for executive officers .
Performance Compensation
Prudential’s executive incentives link pay to multi‑metric results. Annual incentives use four enterprise metrics; long‑term incentives include performance shares (ROE vs peers, BVPS growth, stock price) and RSUs.
| Program | Metric | Target Definition | 2024 Actual | Payout/Factor | Vesting |
|---|---|---|---|---|---|
| Annual Incentive | EPS (AOI, diluted) | Pre‑set EPS target | $13.73 (after standard adjustments) | 0.925 factor | Annual cash award; individual awards funded by Final Performance Factor |
| Annual Incentive | Relative ROE vs peer median | 0.0% vs peer median = 1.0 | +0.3% vs median | 1.025 factor | As above |
| Annual Incentive | Total Operating Expense vs plan | Plan = 1.0 | +$11M vs plan | 1.000 factor | As above |
| Annual Incentive | Customer Experience (NPS aggregate) | Change vs prior year | Not numerically disclosed | Included in 1.060 Final Performance Factor | As above |
| Annual Incentive | Final Performance Factor | Weighted average of 4 metrics | 2024 factor = 1.060 | 1.060 | Funds individual AIP awards |
| Performance Shares (2022–2024) | ROE vs peer group; BVPS growth | Relative ROE and adjusted BVPS growth | Program payout for NEO cohort = 81.5% | 81.5% of target shares | Three‑year performance period; settlement February following period |
| RSUs | Stock price appreciation | n/a | n/a | n/a | Vest in equal annual installments over three years |
Program notes and guardrails:
- Standard adjustments applied to EPS/ROE (exclude actuarial updates, M&A/reinsurance impacts, variable investment income beyond ±10% of plan, outsized rate impacts on BVPS) to better reflect operating performance .
- 2021–2023 performance share awards modified to cap BVPS component at target and exclude outsized rate swings; intent was to preserve retentive/motivational objectives; 2024 payout was 81.5% (below target) .
- No dividend equivalents on unearned performance shares; no option repricing without shareholder approval .
Equity Ownership & Alignment
- Initial insider reporting: Mr. Chappuis filed a Form 3 on April 3, 2025 (event date March 31, 2025) indicating his status as a reporting person at Prudential Financial . Subsequent Form 4 activity is recorded under CIK 0001383669 .
- Share ownership/retention: Executives have stock ownership requirements and must retain 50% of net shares from equity awards; hedging/pledging of company stock is not permitted .
- Beneficial ownership percentages: PRU discloses executive/director holdings broadly; individual Form 3/4 filings will reflect Mr. Chappuis’s evolving ownership; exact share counts were not detailed in proxy tables for him (he was not an NEO in FY2024) .
Employment Terms
- Plan‑based approach: Prudential uses the Severance Plan and a Change in Control Program rather than individual employment agreements for executives; terms can be updated via plan governance .
- Caps and tax policy: No excise tax gross‑ups; policy prohibits severance/CIC packages exceeding 2.99× salary+most recent bonus without shareholder approval .
- Change‑in‑control mechanics: If awards are not assumed or replaced by a successor, outstanding performance shares vest at target and RSUs vest; health benefits continue for 18 months, with an associated tax gross‑up for those health benefits only per CIC program .
- Clawbacks: Incentive awards for executive officers are subject to clawback for financial restatements and misconduct .
Investment Implications
- Alignment and retention: Three‑year performance cycles with ROE vs peers and BVPS guardrails plus RSU three‑year vesting support retention and long‑term alignment; recent payout (81.5% for 2022–2024) underscores discipline and mitigates windfall risk .
- Insider supply signals: Ownership/retention requirements and anti‑hedging/pledging policies reduce near‑term selling pressure; monitor Form 4s post‑award/vesting dates for any routine net‑share sales for tax withholding .
- Performance linkage: Annual incentives tied to EPS (AOI), relative ROE, expense control, and customer experience, with standard adjustments, create sensitivity to core operating execution and peer‑relative returns—key drivers for PGIM’s growth agenda under Chappuis .
- Governance and pay risk: Say‑on‑pay approval fell to 72.74% in 2024 amid BVPS methodology adjustments; Board added disclosure and guardrails and has not made further in‑flight adjustments in 2025—reducing program change risk going forward .