In a month when Equitable have announced increases to penalties for 'with profits' policyholders for some up to 14% penalties, news has circulated the industry that the directors have received substantial bonuses. These figures which are not confirmed, but have been published in a number of industry publications say that:
David Thomas, former director received £150,000 for delaying his retirement and an increase in his pension fund by some £350,000. Former Chief Executive, Chris Headdon, is now receiving a pension income of £96,000. New Chief Executive, Charles Thompson, has received a bonus of £30,000 to add to his salary of £350,000. Chairman, Vanni Treves, could receive a bonus of £250,000 to add to his.
Our view
If the above figures are true it is a public relations disaster. This firm is trying to help a number of clients who have Equitable policies and are trying to avoid retiring in poverty and we find this sort of news intolerable. We trust when people are sharing out any cash, they will remember the client, who one of the directors will be seeing next Thursday, who retires this month with no growth on his policy whatsoever over the last 2 years or so and a penalty on his plan because he is guilty of reaching his retirement date!