Direct Line’s Geddes and Reizenstein to get 2.5% pay rise

Direct Line Group chief executive Paul Geddes (pictured) and chief financial officer John Reizenstein will get a 2.5% rise in their base salary 2016, according to the company’s annual report.

This follows the 2% increase both received in 2015.

Geddes will be paid a base salary of £795,000 from 1 April 2016, up from £775,000.

Reizenstein’s base pay will go up to £481,000 from £469,000.

The insurance group has also changed the financial measure it uses to determine Geddes and Reizenstein’s annual bonuses. In 2016, 55% of the bonus payout will depend on profit before tax, rather than ongoing operating profit.

Total 2015 pay

Geddes was paid a total of £4.8m in the year to 31 December 2015.

This was down 10% on the £5.4m he was paid in 2014, but this was largely down to an adjustment to Geddes’s previously reported 2014 long term incentive plan (LTIP) award, which pushed the 2014 figure up by £732,772.

Geddes’s total 2015 pay included a base salary of £771,000, an annual bonus of £1.1m and an LTIP award of £2.7m. He was also paid £18,000 in benefits and received a £193,000 pension contribution.

Reizenstein was paid a total of £2.8m in 2015. This was up 28% on the £2.2m total package he received in 2014. Reizenstein also saw an adjustment to his previously reported LTIP award, which pushed the 2014 LTIP figure up by £288,014.

Reizenstein’s pay package included a base salary of £467,000, and annual bonus of £602,000 and an LTIP award of £1.6m.

He was also paid benefits of £15,000 and a pension contribution of £117,000.