The man from the Pru

Sir Peter now turns his attention to the retail sector

The man who revitalised the Prudential is turning his attention to Sainsbury's, but can Sir Peter Davis turn the troubled retailer around?

He has left the company he transformed on a high note.

The Prudential is now a stock market darling, and its internet bank Egg is an e-commerce success story.

It is a far cry from the Prudential 58-year-old Sir Peter inherited. Beset by the pensions mis-selling scandal, the Prudential's reputation suffered a body blow that could have been fatal.

Sir Peter turned around the Prudential

Unlike his predecessor, who denied all wrongdoing, Sir Peter faced the music, and long before internet businesses were feted by investors, the Pru set up Egg.

Egg smashed its five-year business targets within the first seven months.

He is now turning his attention to Sainsbury's where he is to be its new group chief executive. The move has been welcomed by analysts, who say that if anyone can turn Sainsbury's around, Sir Peter can.

Upside for Sainsbury's

"Why would a man like Peter Davis, with a strong reputation in the City, move to Sainsbury's if he didn't think there was serious upside potential there?" said one.

Sir Peter is no retail novice, having already worked at Sainsbury's between 1976 and 1986, first as marketing director, then as assistant managing director.

The company he returns to now is very different, having been humbled by an increasingly competitive market and facing more tests with the arrival of US retail giant, WalMart.

He joins on a salary of £750,000 a year, with a bonus of up to 50%. He also has performance-related options that are worth four times his salary.

Prior to the Pru, he was chief executive and chairman of Reed International from 1986 to 1994. The forthright executive was involved in the merger with Dutch publishing company Elsevier.

Analysts have already jumped to the conclusion that some European moves are on the cards for Sainsbury's.

His experience of web banking services may also herald change for the supermarket.

Investors will have to wait until May before he sets out his vision for the company.

His business acumen has been recognised outside the corporate world. He has been chairman of the New Deal taskforce since 1997, looking at the government programme for getting young people back to work.

Prior to that, he was involved with the Basic Skills Agency and the Advisory Council for Education and Training Targets.

Pain at the Pru

The Pru's reinvention wasn't achieved without pain.

Part of the reason the stock market has approved of Sir Peter's stewardship of the Pru is the aggressive cost cutting he introduced.

He unveiled plans to axe 4,000 jobs, mainly in retail financial services.

Even without the job cuts, he upset staff.

The arrival of WalMart has shaken up UK retailing

He annoyed Prudential's women employees by resurrecting the Man from the Pru campaign and irritated some long-serving male employees by claiming to be that man, when he appeared in the TV ads.

Facing the music

The retail reality may be harsh, but when Sir Peter joined the Pru, it too was in the throes of change.

He faced a gruelling two hour interrogation by a Treasury Select Committee during which the company was criticised for its role in the mis-selling scandal.

Mick Newmarch, Sir Peter's predecessor offered "total reassurance" in 1994 that Prudential was not guilty of mis-selling.

Sir Peter told MPs he was ashamed of some of his company's behaviour regarding personal pensions.

His switch, while a surprise, was not such a great blow for Prudential where his spell as chief executive was scheduled to end this year.

Later this year, he was to become chairman, playing a strong ambassadorial role for the group and ensuring it keeps up with issues such as technological advances.

Marketing man

Born in Cheshire, Sir Peter completed his education at the Institute of Marketing.

He has previously been vice president of the Chartered Institute of Marketing and is a founder and board member of the Marketing Council.

He is married with three children.