FSU National Insurance President Wendy Conlan attended the IAG AGM on Wednesday and asked the IAG Board of Directors whether they would commit to a fair, transparent pay system which provides an adequate safety net for all employees.

Wendy who works at NRMA in Parramatta, received many emails from IAG employees who were dissatisfied with IAG's most recent pay offer of a 1.5% minimum performance increase in Year 1, and a minimum increase of not less than 1% in year 2. 

IAG chief executive Mike Wilkins on the other hand received a pay and perks package valued at $5.74 million in the year to June, up from $4.3 million the previous year. Pay and bonuses given to executives who have worked at the group in the past two financial years soared almost 30 per cent to $19.5 million in the year to June.

IAG shareholders and the Board acknowledged the invaluable contribution of all staff to the success of the business through their hard work during the natural disasters. Shareholders in support of Wendy's question to the Board then continued to question why IAG is only prepared to guarantee 1.5% to general staff when executives in comparison are receiving healthy increases?

Suncorp use a remuneration model that guarantees a base pay increase of 2% from 2011-2014 coupled with the opportunity to receive performance pay from a guaranteed merit pool. Zurich provides 3% guaranteed performance pay for employees who exceed expectations in year 1 and 2 of their agreement and 4% in years 3 and 4. IAG are proposing a similar model but with a smaller annual guarantee.

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