Standard Life has increased the remuneration levels of its top three executives for 2013 after awarding them pay and bonuses worth nearly £12 million in 2012.
The life company will increase the base pay of its chief executive, David Nish, by 1.9% to £790,000, its chief financial officer, Jackie Hunt, by 5.1% to £565,000 and Keith Skeoch, chief executive of Standard Life Investments, by 3% to £437,750, according to its Directors’ remuneration report, published this week.
Average pay increases across the group for 2013 will be 2%.
Nish received total remuneration of £5 million for the 12 months to 31 December 2012, while Hunt received £2.5 million and Skeoch £4.3 million.
In addition, Standard Life’s long-term incentive plan (Ltip) for its executives is set to vest at 100% of the maximum award, which for Nish, Hunt and Skeoch equates to 200%, 125% and 200% of salary, respectively. The employer’s current Ltip is due to expire in 2014.
Standard Life Investments’ Ltip is set to vest at 69.5%. Skeoch can earn up to 200% of his salary under this scheme. Nish and Hunt do not participate.
Crawford Gillies, chairman of the remuneration committee, said: “Given financial performance and the progress made towards our key strategic priorities, the remuneration committee, in evaluating performance for the year, decided it was appropriate to award the executives close to maximum payments under the annual bonus arrangements.”
The remuneration committee has launched a review of the incentive arrangements for its executive team. It will continue to consult with investors during 2013 with a view to putting a new incentive arrangement to shareholders for approval in 2014.