She will take up the position on 10 June and will also be a member of the firm's audit committee. Prudential is a corporate member of the Institute of Financial Planning.
Ms Schroeder will initially serve a three year term on the board and will be paid £112,500 annually. This would be made up of £87,500 for her work on the board and £25,000 for her work on the audit committee.
Prudential said it expected Ms Schroeder to bring a 'deep experience and understanding of the insurance industry and its regulatory framework, both in the US and globally'.
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Ms Schroeder was previously a managing director at Morgan Stanley in its global insurance equity research where she worked from 2000-2009. She began her career as an accountant at Ernst & Young for 11 years before working for the Financial Accounting Standards Board in America.
Paul Manduca, chairman of Prudential, said: "I am delighted Alice is joining the board. She is highly respected by the international investment community and the roles she has undertaken have given her considerable insight into all aspects of the global insurance industry, including its regulation and accounting."
Michael Garrett, who has been on the Prudential board and the remuneration committee for the past nine years, will step down in August.

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