Equitable Life has drawn fresh attacks from its policyholders after revealing it has paid a £30,000 sterling bonus to chief executive Mr Charles Thomson in 2001, the year the life assurer nearly collapsed.
"There can be no basis for any bonus in a year when a million policyholders have suffered on average a 25 percent fall in the value of their pensions," said Mr Paul Braithwaite, spokesman for the Equitable Life Members Action Group.
The payments were published today in Equitable's annual report.
The country's oldest life assurer hit financial trouble two years ago after losing a legal battle over pension policies with guaranteed returns which were sold in the 1970s and 1980s when interest rates and investment returns were high.
In one of the nation's biggest financial scandals, the society had to close to new business and slash bonus payments. It could no longer afford to honour its guarantees as stock markets fell along with interest rates.
Mr Thomson took up his post in March 2001 with a new chairman, Mr Vanni Treves, appointed in February last year.
The society was also paying salaries for former directors who are the subjects of a lawsuit from Equitable Life itself, the report showed. Equitable said those salaries had to be paid in order to meet contractual obligations.
"It makes for horror story reading", said Ms Liz Kwantes, spokeswoman for the Equitable Life Members' Help Group, commenting on the report. Equitable has one million policyholders.
Mr Treves received £58,750 last year while Mr Thomson received £347,758 in total, including his bonus.