The Men Who Run Legal & General Group Plc (LGEN)

Mark Zinkula was appointed to the group board in 2012, but he had been CEO of L&G Investment Management since 2011. He joined LGIM’s U.S. arm at its inception in 2006 and became head in 2008. He previously was head of fixed income at Aegon Asset Management. His appointment to the group board was explicit recognition of LGIM’s importance in Legal & General Group Plc (LON:LGEN)’s international expansion strategy.

Legal & General Group Plc (LON:LGEN)’s seven non-execs almost exclusively have financial services or finance director backgrounds.

LGIM has become one of the most vocal fund managers opposed to excessive boardroom pay. Breedon’s £9 million payoff last year seems to have been uncontroversial, however. Executives have substantial shareholdings, though the formal requirement for a “voluntary shareholding of 50% of base salary” is weak.

I analyze management teams from five different angles to help work out a verdict. Here’s my assessment:

Overall, Legal & General Group Plc (LON:LGEN) scores 16 out of 25, a middling result. The company has recovered well from its distress in the financial crisis, and the new CEO’s plans look credible, but it’s too soon to tell how successful they may be.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

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Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His latest acquisition, H.J. Heinz Company (NYSE:HNZ), has long had a reputation for strong management. Indeed, Buffett praised its “excellent management” alongside its high-quality products and continuous innovation.

The article The Men Who Run Legal & General Group originally appeared on Fool.com.

Tony does not own any shares mentioned in this article.

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