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Zurich slashes pay for top management after poor 2015

Posted On: Mar. 4, 2016 12:00 AM CST

Zurich slashes pay for top management after poor 2015

(Reuters) — Zurich Insurance Group Ltd. cut 2015 pay for its top management by more than half after they failed to meet major performance targets, the Swiss insurer said in its annual report published Friday.

Total 2015 pay for the 13 members of Zurich's top management team was $22.6 million, a big drop from the $55.4 million received by 12 executives in 2014.

Zurich's shares fell 17% last year, the stock's worst performance since 2008, in response to a sluggish performance in its flagship general insurance business and back-to-back quarterly profit warnings. In contrast, the European insurance sector index rose 14%.

Zurich said in its annual report that the key metric in connection with the managers' pay was net income attributable to shareholders, which fell 53% in 2015.

Former Chief Executive Martin Senn, who left the company suddenly in December, was paid 2.5 million Swiss francs ($2.52 million) in 2015, less than a third of the 8.5 million francs ($8.57 million) he got in 2014.

Mr. Senn had come under pressure following a failed takeover bid for Britain's RSA Insurance Group P.L.C. and a weak performance from Zurich's main business.

Last month, Zurich appointed Generali CEO Mario Greco to replace Mr. Senn. Mr. Greco is set to take up his new job on Monday.