Insurers protested after a City boss received a multi-million pound pay package.

The Association of British Insurers (ABI) wrote a letter complaining to fund management company Schroders over a £10 ...

Insurers protested after a City boss received a multi-million pound pay package.

The Association of British Insurers (ABI) wrote a letter complaining to fund management company Schroders over a £10.5m package for new chief executive Michael Dobson last week.

The ABI is still waiting for a response.

Insurers own about a fifth of the shares traded on the London Stock Exchange and the ABI has previously campaigned against fatcat boardroom pay deals.

It favours pay being linked to performance and criticised Schroders for including a relatively small incentive component in Dobson's pay.

The ABI has made clear it does not want Dobson's deal to set a precedent.

Dobson took over as chief executive in October following the departure of David Salisbury in August.

He is guaranteed a salary and cash bonus totalling at least £2m for each of the next three years.

He also gets free shares worth a minimum of £1.5m a year.

He will get £3.75m of free shares if Schroders stock doubles in price over the next five years.

But Dobson's perks do not stop there.

He received £8m to secure his services after Schroders bought his investment company Beaumont for £33.5m.

And if forced to leave Schroders before 2004 he could be entitled to three years' Beaumont salary at a cool £3.5m.

The ABI said this sum was too big.

Its letter of complaint was the second it had sent to the company in less than a year.

It previously criticised a £5m bonus given to former chief executive Sir Win Bischoff who oversaw the takeover of the group's investment banking subsidiary by Citigroup.

Schroders did not comment on the ABI's letter.