Prudential's Choice

The nation's second largest life insurance company last week decided to wink at its own actuarial tables. To succeed retiring Carrol M. Shanks, 62, as president, the Prudential Insurance Co. (outranked only by Metropolitan Life) picked Executive Vice President Louis R. Menagh Jr., 68, a 46-year Prudential veteran who is already three years past the company's recommended retirement age. Menagh (rhymes with Lena) is a spry and active executive who attributes his good health to the fact that his mother lived to be 92, his father 89 (after retiring at 80--for one week). His selection nonetheless came as a considerable surprise to the Pru's policyholders and the insurance world.

Menagh, born in Brooklyn, joined the Pru right out of Rutgers ('14). He studied mathematics on the side, worked his way up to assistant actuary, during the '303 was placed in charge of the Pru's underwriting and claims departments. After playing a starring role in carrying out the Pru's decentralization program after World War II, he was moved up to vice president in 1947, made an executive vice president in 1957. He worked closely with Shanks, has had charge of the Pru's huge building projects in Boston and Newark.

The Pru's directors were faced with the unexpected task of finding a new president after Shanks resigned as a result of the furor about a personal timberland deal with Georgia-Pacific Corp., a big Pru borrower. Shanks, who would have saved $400,000 in taxes, canceled the deal and was cleared of any wrongdoing. But, according to associates, he felt that several members of the Pru's board were opposed to him--despite the fact that most board members requested that he stay. He will get an annual retirement pay of $100,000.

Under Shanks, two or three men were being groomed for the top post, but the Pru's board passed over all the heirs apparent, including Executive Vice President Orville Beal, 51, who is thought by many to be in line for the next opening. Menagh's term as president can be extended to age 70 by the directors, but beyond that would need the approval of New Jersey insurance authorities. The company insists that his appointment is not temporary, and Menagh himself says that he has "never given a thought" to retirement.

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