Old Mutual CEO Receives Below-Inflation Pay Boost on 2012 ProfitRenee Bonorchis
Old Mutual Plc, the U.K.’s third-largest insurer, increased Chief Executive Officer Julian Roberts’s pay 0.5 percent after profit rose 18 percent last year.
He received a salary of 870,000 pounds ($1.3 million), short-term incentives of 1.15 million pounds and 341,000 pounds in benefits for a total compensation of 2.36 million pounds, according to the London-based company’s annual report, which was published on its website today. Separately Roberts, who was paid 2.35 million pounds in 2011, got 6.6 million pounds in shares from last year.
“Basic salary increases for executive directors and for other members of the group executive committee effective in 2013 were below inflation and below average increases provided to other employees across the group,” Russell Edey, chairman of the compensation committee, wrote in the annual report. “Neither short-term nor long-term incentive percentages were increased for executive directors for 2013.”
Old Mutual achieved its target to pay down 1.5 billion pounds of debt and boost its return on equity to 15 percent by the end of 2012. After selling assets in the U.S. and Europe, Old Mutual has set aside 5 billion rand ($540 million) for acquisitions in fast-growing countries in Africa where there is an expanding middle class.
The company is the best-performing stock on Johannesburg’s FTSE/JSE Africa Life Assurance Index this year, having risen more than 14 percent. It gained 0.1 percent to 200.4 pence as of 1:26 p.m. in London trading.