Equitable bosses strike gold

BOSSES at Equitable Life have been told they are in line for six-figure bonuses - even if a crucial plan to keep the insurer solvent fails to win the backing of members.

Chief executive Charles Thomson, who earns £275,000 a year, stands to collect a further £275,000 in March - whether or not members of the society vote next month for a scheme to keep Equitable afloat. He also picks up £68,750 a year for pension contributions and a further £15,850 in car allowance.

Vanni Treves, brought in as Equitable's new chairman last March to clear up the mess left by the previous board, is set to collect a £250,000 bonus. Treves - also chairman of Channel 4 - is paid £60,000 a year.

He said: 'We had remuneration packages drawn up after advice from independent experts. These are at the low end of the scale. Whether the scheme vote fails or not is not part of the criteria for whether bonuses are to be paid.'

Thomson says that a key element in deciding how much bonus will be paid is the society's ability to improve customer service.

Equitable has just opened a new 100-strong call centre to deal with the society's 'lamentable' record in this area. Paul Braithwaite, chairman of the Equitable Members' Action Group, said: 'Charles Thomson has not distinguished himself at all in his role.

'I can see no reason why he should enjoy a big bonus on top of an already generous pay package when policyholders' pension fund values have been reduced by a third under his stewardship.'

Equitable could face insolvency if members do not approve the compromise plan next month.