Insurer’s general insurance chief executive in line for 2% base pay rise this year
LV= general insurance managing director John O’Roarke was paid a total of £672,000 in the year to 31 December 2014, up 26% on his total pay of £532,000 in 2013.
The main reason for the increase was a doubling of his annual bonus to £300,000 (2013: £150,000). O’Roarke also received a 2% increase in base pay to £294,000 (2013: £288,000).
While O’Roarke’s bonus doubled in 2014, he could have earned a bigger bonus if he had beat certain targets.
His bonus was 101% of base salary, compared with a maximum achievable bonus of 120% of base salary.
The divisional profit of £92m was shy of the £99m needed to trigger the maximum pay-out under the part of the bonus governed by profitability. O’Roarke could have been paid a bonus of 72% of his base salary if the target had been hit, but received 61%.
He also could have earned a maximum bonus of 48% of salary for hitting individual and strategic objectives, but was in fact paid a bonus of 40% of salary for this segment.
O’Roarke did not receive any pay-outs from the company’s general insurance long-term incentive plan (LTIP) in either 2013 or 2014, but could be in line for a pay-out in 2015 when the three-year scheme closes.
On 1 April this year, O’Roarke’s salary will increase by 2% to £301,700 from its current level of £295,800, where it has been since 1 April 2014.
O’Roarke’s theoretical maximum total pay for 2015, including bonus, is £743,000.