Executive pay goes up at SIG

The company’s annual report, released yesterday, shows total pay and benefits for directors increased to £3.2m in 2011 from £2.2m a year earlier.

The Sheffield-based group recently said 2011 underlying pre-tax profits grew 27 per cent to £81.7m despite economic malaise in its main markets of UK and Europe. Revenues grew eight per cent to £2.74bn.

The report, entitled Moving in the right direction, reveals chief executive Chris Davies’ total remuneration increased to £1.07m in 2011 from £867,000.

That included a salary of £533,000 and bonus of £512,000.

Former finance director Gareth Davies, who left SIG in December, earned total remuneration of £1.05m in 2011, up from £498,000 a year earlier. That included a £428,000 payoff.

After freezing its CEO’s salary in 2011, SIG will increase it by three per cent this year to £548,861.

“The committee feels it was important to provide the chief executive with a moderate increase in base pay to recognise his performance in leading SIG’s recovery,” said the report.

Shareholders rejected SIG’s remuneration report in 2010, after disapproval from influential investor body the Association of British Insurers.

SIG’s latest annual report said: “Our major institutional shareholders were consulted before this approach was implemented and were supportive.”