Old Mutual proposes 1,000 percent break-up bonus for CEO Hemphill

LONDON (Reuters) - Anglo-South African financial services firm Old Mutual (OML.L) on Tuesday proposed a maximum pay-out for chief executive Bruce Hemphill of 1,000 percent of his 2016 base salary in the firm's managed separation incentive plan.

The plan, to be voted on at a general meeting following the company's annual general meeting on June 28, replaces the firm's previous remuneration policy, after Old Mutual said in March it planned to break itself into four parts.

The maximum pay-out will depend on the achievement of performance targets measured at the earlier of the completion of the managed separation, or on March 11, 2020, Old Mutual said in notes attached to a circular detailing the two meetings.

Hemphill's 2016 base salary is proposed at 900,000 pounds ($1.31 million).

Old Mutual consulted more than 50 percent of its shareholder base before proposing the new remuneration policy, an Old Mutual spokesman said.

(Reporting by Carolyn Cohn; editing by Maiya Keidan)