Standard Life Plc, Scotland’s biggest insurer, awarded Chief Executive Officer David Nish a 66 percent pay increase last year as profit and assets under management rose.
Nish, 51, who took over as CEO in January 2010, received 1.97 million pounds ($3.2 million) in salary, bonus and benefits last year compared with 1.19 million pounds in 2009, when he was finance director. Standard Life’s shares declined 0.2 percent in the 12 months to Dec. 31.
“In March, we announced higher net flows, an increase in the value of assets and revenue, and growth in profit,” Crawford Gillies, head of Standard Life’s compensation committee, said in an e-mailed statement today.
The insurer’s pay policy rests on four areas of financial performance including operating profit, dividend and assets under administration, the annual report said. All those measures climbed at least 6 percent in 2010. Nish’s pay increase follows a 41 percent rise in earnings for Tidjane Thiam, CEO of Prudential Plc, the U.K.’s biggest insurer by market value, which was announced yesterday.
Prudential, which last year failed to buy AIA Group Ltd. for $35.5 billion, will put all its directors up for re-election at its annual general meeting, scheduled for May 19 in London.