QBE Chief Has Pay Cut

Post by Sharat on April 3, 2009 · Under Company News, insurance · Comment

Australian insurance major QBE Insurance Group has finally ceded to shareholder pressure and reduced the retirement benefits of its chief executive Frank O’Halloran.

Shareholder advisory firm RiskMetrics issued a report which effectively advised investors not to approve the initial remuneration plan. Mr. O’Halloran’s benefits will now be reduced to a lump sum amount equaling one year’s base salary.

Prior to this Mr O’Halloran was entitled to 150 per cent of his total remuneration cost, including annual base salary and short term cash incentives for the year prior to his retirement.

Last week the shareholder advisory told its subscribers that they should reject the company remuneration report. The estimated payout under the previous package had Mr O’Halloran receiving A$7.35 million and stock options.

QBE, which dismissed the “jaundiced” RiskMetrics report, said it would also now allow shareholders to vote on share issues to executives from next year.

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