Equitable AGM on Wednesday was stormy

The deal sees the amount paid to non-executive directors more than double and chief executive Charles Thomson's salary increase from �275,000 to �371,250 during 2002-03.

At the annual meeting on Wednesday the majority of policyholders present had opposed the directors' pay deal.

But when the votes of those that did not attend the meeting were counted the pay deal was carried by 211,288 votes to 62,726.

In addition, Rodney Allen, a member of the Equitable Members Action Group, lost his bid to be elected onto the insurer's board.

Chairman's intervention

Mr Allen had stood for the board on a ticket of pursuing the government for compensation for the alleged failure of regulators to prevent the insurer from getting into a financial mess.

On stage the dozen board members shifted uncomfortably in their seats as Mr Treves insisted the money paid to non-executive directors was a 'bargain' Equitable's stormy AGM

Members of the mutual insurer - already engaged in a costly court case against former directors and auditors Ernst & Young - voted 149,037 to 124,854 against Mr Allen's appointment to the board.

However, the majority of the votes against Mr Allen were cast by the chairman Vanni Treves on behalf of absent members.

Without Mr Treves' intervention Mr Allen would have won a clear majority.

With the backing of Mr Treves, four members of the Equitable board - Sir Philip Otton, Charles Thomson, Andrew Threadgold and Nigel Brinn - were re-elected.