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Bob Mendelsohn, the CEO of Royal & Sun Alliance, took a small pay cut last year of around $17,200, but still managed to take home a combination of salary and benefits of around $1.48 million.

Mendelsohn’s performance at R&SA has come under increasing criticism from investors and analysts after the insurer failed to meet several announced goals, including reducing its combined ratio to 103 percent, and saw its operating profits plunge to near zero, following significant reserve strengthening related to loss projections, including increased asbestos liabilities.

R&SA’s decision to maintain its pay structure for top executives contrasts with the actions of American International Group. Longtime CEO Maurice “Hank” Greenberg canceled payment of his projected $5 million bonus for 2001, and the pay committee “following Mr. Greenberg’s lead” canceled any 2001 bonuses of other top executives as well.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½ has in fact imposed a pay freeze throughout the company, following the losses from Sept. 11, which are estimated at around $800 million, and has capped bonuses for lower management at 2000 levels.