The remuneration of a CEO of a large insurance group is not limited to a monthly transfer. It consists of several layers, each serving a different purpose: to retain, reward performance, and align the interests of the CEO with those of the shareholders. Philippe Donnet, at the helm of Generali since March 2016, perfectly illustrates this mechanism. His salary package, regularly scrutinized during general meetings, far exceeds a simple fixed salary.
Fixed, variable, and long-term: how the remuneration of an insurance CEO is structured
Before discussing amounts, it is essential to understand the three tiers of a CEO’s package in the insurance sector. The first is the annual fixed salary, paid monthly, regardless of results. It represents the contractual base.
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The second tier, the annual variable (or bonus), depends on specific objectives: revenue growth, operating profit, customer satisfaction. These criteria are defined by the board of directors and validated in the general meeting.
The third tier includes long-term components. This includes free share plans, stock options, or deferred compensation indexed to the group’s stock performance over several years. This part often generates the highest amounts and the most heated debates among shareholders.
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To better understand Philippe Donnet’s salary at Generali France, it is important to keep in mind that his role covers the entire group, not just the French subsidiary. The remuneration published in Generali’s annual reports therefore reflects an international scope.
Philippe Donnet’s remuneration at Generali: known amounts
In 2022, Philippe Donnet’s total remuneration reached nearly 4 million euros. This amount included the fixed salary, the annual bonus, and benefits in kind. Long-term components, often communicated separately, were added to this envelope.
Why discuss 2022 and not 2024? Because the most recent remuneration data published in Generali’s annual reports often pertains to the previous fiscal year. Detailed figures for 2024 will be available in the group’s governance report, typically released in the first half of the following year.
This timing is important. Articles announcing a “2024 salary” frequently refer to previous data. Only Generali’s official annual report is authoritative for the exact amounts, broken down by position.
A group scope, not just France
Philippe Donnet is the CEO of the Generali group, headquartered in Trieste, Italy. His remuneration is therefore set by the governance bodies of the Italian group, not by the Generali France subsidiary. This distinction changes the interpretation of the figures.
A general manager of a French insurance subsidiary typically earns much less than a group CEO. Comparing Donnet’s remuneration to that of a subsidiary director makes no sense. The proper comparison is with other CEOs of large publicly traded European insurance groups.
Ranking of remuneration in the insurance sector in Europe
The ranking published by La Tribune de l’assurance in September 2024 allows for situating Philippe Donnet among his peers. Amanda Blanc, CEO of Aviva, held the top position with a remuneration of 7,489,640 euros. Thomas Buberl, CEO of Axa, was also among the highest-paid executives in the sector.
Several factors explain the disparities among these executives:
- The size of the group and the volume of collected premiums directly influence the level of remuneration set by the board of directors.
- The variable portion linked to stock performance can double or even triple the annual fixed salary depending on the group’s results over three to five years.
- Local governance practices play a role: British and American groups historically pay higher packages than continental groups.
Philippe Donnet is positioned in the upper range of European insurance executives, without reaching the levels of Anglo-Saxon CEOs. His remuneration reflects the size of Generali, the third-largest European insurer by revenue.
Shareholder voting and governance: who decides the salary of the CEO of Generali
For several years, the remuneration policy for executives of large publicly traded companies has been subject to a vote at the general meeting. At Generali, this vote covers the entire package: fixed, short-term variable, and long-term plans.
This mechanism, called “say on pay,” gives shareholders an advisory or binding power depending on the jurisdiction. In Italy, the vote on the remuneration policy is binding for the prospective part (the upcoming policy) and advisory for the retrospective part (the amounts actually paid).
Are you wondering if shareholders contest these amounts? In practice, approval rates often exceed two-thirds of the votes. Controversies mainly arise when the group’s performance does not justify the level of variable compensation paid.
- The remuneration committee of the board of directors proposes the package, relying on industry benchmarks and specialized consulting firms.
- Proxy advisors (vote advisory firms) issue recommendations to institutional investors before the general meeting.
- The governance report published each year details the performance criteria used to calculate the variable.
For Philippe Donnet, re-elected for a third term as head of Generali, stability in the role enhances the weight of long-term variable in the total package. The longer a CEO remains in office, the more multi-year plans mature and convert into actual remuneration.
Thus, interpreting the salary of a CEO like Philippe Donnet benefits from being placed in this governance context. The gross amount means nothing without the context of performance and shareholder voting that accompanies it. The financial and sustainability reports published by Generali remain the most reliable source for tracking the evolution of this remuneration year after year.