Equitable Life, which shrunk its business last year in two major disposals, has enlarged the pay package of its controversial chief executive, Charles Thomson.
The mutual offloaded almost 30% of its funds last year in deals with Canada Life and Prudential, while Thomson's total rewards rose by 22% to top £1m.
Thomson's package included salary of £453,973, a salary-related bonus of £199,305, and a discretionary bonus of half his salary - the maximum permitted under an "annual retention bonus scheme for senior staff" introduced in September 2006.
The recommendation for the maximum allowable payment came from the three-person remuneration committee chaired by non-executive Jean Wood and including the society's chairman Vanni Treves, who appointed Thomson and Wood soon after his own arrival in 2001.
Under the scheme, Thomson received £99,653 in December 2006, £99,653 in June 2007, and £139,514 in December 2007. He is also in line for another £348,783, or three-quarters of his salary, at the end of 2008 if he is still with the company.
According to the report, "a further retention scheme to reward performance and delivery of the strategy for the society is currently under consideration".
Paul Braithwaite, secretary of Equitable Members Action Group, said the payments were "outrageous", and were likely to be questioned at the society's annual meeting next month.
Equitable's with-profits fund is now at £6.8bn, as the closed fund is run off, with the possibility of further disposals of policies.
Thomson was key witness in Equitable's failed £3.7bn legal actions against former non-executives and former auditor Ernst & Young in 2005, which cost the society £45m.
His discretionary bonus was cut to two-thirds of his salary in 2006.
Then last summer, The Herald revealed that Thomson had been reprimanded by the Institute and Faculty of Actuaries for misconduct, after being found guilty of bringing the profession into disrepute over the revelation during the court action that he had faked his job reference for Equitable in 2001.
Thomson protested to The Herald that the matter had been "completely trivial".
The profession, however, cited his "failure to comply with the standards of behaviour and integrity which the public and the profession might reasonably expect of a member".
Thomson had admitted in court in April 2005 that he himself was the author of the glowing reference to his "exceptional record of success" at Scottish Widows, where he was the deputy chief executive from 1995 to 2000.
The reference concluded: "We will miss his intellect, integrity, and energy and feel sure he will bring great value to other organisations at the highest levels."
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