Equitable Life is in the news again but this time it seems to rub salt into policyholders' wounds.
The Chief Executive of Equitable Life, Charles Thompson is reported to have received a £100,000 pay rise taking him to a massive £371,250.00. He also received a bonus of £82,500.
Vanni Treves, Chairman of Equitable Life is apparently paid a fee of £125,000 but receives no bonus.
Charles Bellringer, former Chief Financial Officer was in post for six months and then walked away rather quickly with a payment of over £360,000.
Whilst some may argue that being the Chief Executive of Equitable Life deserves even more money than this, one has to spare a thought for both current and ex-policyholders who received no terminal bonus and only meagre annual bonuses. There has been a little more positive news from Equitable recently with the declaration of bonuses to be paid from 1 April 2003.
Pension with profits policyholders will receive 3.5% and investment policyholders will receive 2.75%. These bonus declarations are not guaranteed.
Our View
Whilst the news of pay rises cannot be welcoming to policyholders, we believe that at least some credit should be given to Charles Thompson and Vanni Treves. Equitable Life appears to be moving to firmer ground, although the recent upturn in the stock market probably has something to do with it. Both Mr Thompson and Mr Treves were put in place to sort out the mess and move the company forward.
What needed to be looked at is the payment of £360,000 to Charles Bellringer. What did he do to earn that much for six months work?
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