Legal & General (L&G) yesterday announced it has upped the base salary for its top executives by a fifth to £560,000.
The company said the decision was justified because the directors - who can also expect to enjoy generous bonus schemes - have taken on expanded responsibilities for delivering the firm's growth strategy and deserve more than their existing £461,250 wages, according to City AM.
One of the beneficiaries of this new policy is new chief financial officer Mark Gregory (pictured), who started work yesterday after a year-long search to find a suitable candidate.
Last year he took home a total package worth £1.9m in his previous, more junior, role as chief executive of L&G's savings arm.
Gregory's fellow board members John Pollock and Mark Zinkula will also benefit from the pay rise, which come into effect immediately and reflect their new roles.
Pollock, currently responsible for the insurance business, has also taken control of the savings business. Zinkula, currently head of L&G's investment arm has gained control of the company's unit trust business.
L&G group chief executive Nigel Wilson - who has a base salary of £653,000 and a total package worth £3.2m - will not have his pay packet reassessed until March 2014, 20 months after he joined the company.
"We aim for overall remuneration to be competitively positioned around the mid-market range in relation to the FTSE 100 with particular regard to insurers and other financial institutions," L&G said.
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Based on ONS data