Mutual's silent majority

MIKE Yardley, the chief executive of mutual insurer Royal London, saw his pay rise 10% last year to £523,000 - but policyholders won't be allowed to vote on his package.

The news comes in the wake of policyholder outrage at Standard Life, where 43% of members rejected the policy on executive pay this month.

Royal, which owns Scottish Life, is the second-biggest mutual insurer after Standard Life. But it will not be balloting members on pay policy. The company's rules, which it plans to change, mean that fewer than 200 members may vote at its annual meeting.

Yardley's package included a £98,000 'performance-related' bonus, which leapt from £40,000 in 2002.

His pension fund rose in value from £1.1m to £1.7m. The company says much of the increase was due to a change in accounting methods.