The four chief executives at Standard Life earned more than £5.3m between them in 2007, the firm reveals today, with top-earning Keith Skeoch alone taking home almost £1.75m.
The company also reveals it paid former director Alison Rees just over £1.1m, as well as £97,500 towards legal fees, in an out of court settlement following claims she made against Standard Life with regards to her exit from the firm in October 2006.
Keith Skeoch, who also received a performance-related cash payment of more than £776,000 last year, is joined at the top table by David Nish, Trevor Matthews - currently on gardening leave before a move to Friends Provident - and Sandy Crombie.
Elsewhere, former executive director John Hylands, who retired just over a year ago, received £934,000, a figure which, like the others, takes into account basic salary, pension allowance, benefits and bonuses. In Hylands’s case, it also includes a termination payment of £689,000.
Standard Life says the earnings reflect its pledge to reward strong performance. “Our salary and bonus structure is designed to reward outstanding performance but not to reward poor performance,” a spokesman says. “It is also designed to be aligned with the interests of our shareholders.
“We aim to provide a total package which enables us to attract, reward and retain high quality people.”
Keith Skeoch earned a basic salary of £350,000 last year as well as an £88,000 pension allowance, £14,000 in taxable benefits and an annual bonus of just under £1.3m. In 2006, he earned just over £1.47m.
Second top-earner Sandy Crombie earned a basic salary of £725,000 and also collected £181,000 in pension allowance, £30,000 in taxable benefits and annual bonuses totalling £708,000. He also received a cash payment of £670,000 relating to the 2003 long-term incentive plan (LTIP) which covers performance over the three years 2004-6.
Trevor Matthews, who was forced to apologise in January 2007 after making a racist remark at a conference in Edinburgh, took home £530,000 in basic salary, £25,000 in taxable benefits and an annual bonus of £457,000. His overall earnings for 2007 – which stood at just over £1.01m – are a drop of almost £280,000 from the previous year.
David Nish earned £483,000 in basic salary, £15,000 in pension allowance, £19,000 in taxable benefits and a bonus of £428,000.
Standard Life says some directors opted to take cash payment of 25% of salary in place of any other pension provision.
Standard Life says it met or exceeded all of its financial and efficiency targets for 2007 whilst achieving record sales and profitability.
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