Chief executive Stuart Vann and finance head Darren Ogden had substantial pay rises despite missing ‘on target’ bonus
Esure chief executive Stuart Vann and finance chief Darren Ogden’s 2013 bonuses were hit after the company missed its trading profit target.
Despite this, both men’s total pay packages increased substantially in the year, with Vann’s rising by 43% and Ogden’s by 78%.
The home and motor insurer’s 2013 annual report also reveals that base salary for the top executives and chairman Peter Wood has been frozen at 2013 levels in 2014, and Wood took a pay cut after Esure started trading on the London Stock Exchange on 27 March 2013.
Vann and Ogden would have received 50% of their theoretical maximum bonus for the nine months after Esure’s stock market listing if Esure had hit its 2013 trading profit target.
However, Esure’s 2013 trading profit of £130.6m just missed a target, unspecified in the company’s annual report. So instead of receiving a bonus of £135,988, representings 50% of the theoretical maximum of £271,976, Vann received a bonus of £116.375 for the nine-month post-listing period.
Ogden would have received a bonus of £59,167 for the nine-month post-listing period of 2013 if Esure had hit its target, but instead received £50,530.
Esure did not specify the exact trading profit target it was trying to hit because it deems it commercially sensitive.
Big pay rises
Despite the missed target, both Vann and Ogden enjoyed substantial rises in their total pay packages in 2013.
Vann was paid a total of £662,576, up 43% on the £463,973 he was paid in 2012.
Ogden enjoyed an even bigger pay rise. The chief financial officer was paid a total of £403,932 in 2013, up 78% on the £226,714 he was paid in 2012.
The main cause in both cases was a rise in basic pay and pensions contributions.
2014 pay freeze
However, Vann, Ogden and chairman Peter Wood’s base salaries have all been frozen at 2013 levels for 2014.
Wood will continue to collect a base salary of £730,000 in 2014, and Vann and Ogden’s base pay will remain at £475,000 and £310,000 respectively.
Chairman of Esure’s remuneration committee Dame Helen Alexander said: “The salaries for the chairman and executive directors and the fee levels for the non-executive directors were set on listing and no changes are proposed to these for 2014.”
She added: “I believe that the remuneration received by our executive directors in respect of the financial year 2013 fairly rewards them for the business performance achieved, and also that thair remuneration arrangements for the year ahead will appropriately incentivise and reward them to deliver our business strategy and returns for our shareholders.”
Wood pay cut
The annual report also shows that Wood, the company’s founder, took a 2.7% pay cut following the company’s listing. He was previously paid an annual base salary of £750,000 compared with its current level of £730,000.