Top boss was on £1.9m performance deal


RBS Insurance chief executive Paul Geddes has had his pay frozen, the group has confirmed.

Geddes is part of the company’s executive committee whose members have all had their pay frozen.

The RBSI top boss was set to receive a remuneration package worth up to £1.9m if he hit performance targets, as reported in Insurance Times in March last year.

The package includes £400,000 in annual performance payout and £1.5m worth of shares maturing in three years based on achieving set goals.

The company this morning announced a profit of £454m in 2011 having reported a £295m loss a year earlier. This was largely due to a strengthening of reserves in 2010 and a relatively benign UK winter last year.

Insurance Times also reported in March 2011 that Geddes was looking to sell his Scottish home, reported to be worth £2.85m, and to move nearer to the RBSI offices in Kent.

Parent company RBS, which is 83% owned by the UK taxpayer, paid out almost £1bn in bonuses despite slumping to a loss of £1.8bn – its fourth straight annual loss – as the Greek debt crisis and compensation linked to insurance mis-selling took hold.

The bank is in the process of spinning off its insurance unit as part of a disposal programme imposed on it by the European Union in exchange for receiving billions in government aid following its near-collapse in 2008. The deadline for the sale is 2013.

RBSI is the UK’s largest home and motor insurer and recently rebranded itself as Direct Line Insurance Group.