Four out of 25 of the highest paid chief executive officers in the insurance industry listed in Business Insurance magazine are based in Bermuda.

Topping the list is Stanford Will, the 67-year-old head of Citigroup Inc, who got $19.5 million in cash compensation - salary plus bonus - for 2000 an increase of over 100 percent on the year before.

In comparison Brian Duperreault, the 53-year-old CEO of ACE Ltd., had a small cash compensation of $2.9 million for 2000 as the highest paid Bermudian boss coming in tenth place on the list.

In 14th place is James Stanard, 52, of RenaissanceRe Holdings who got cash compensation of $2.5 million.

XL's Brian O'Hara, 52 is listed with cash compensation of $1.9 million and Herbert Haag, 54, of Partner Re, with cash compensation of $1.1 million.

The industry journal said that CEO's pay had jumped 27 percent during 2000, outstripping gains in profits in the insurance sector.

It said that the average cash compensation to the 25 highest paid officers of leading publicly held insurers, reinsurers and brokers was $3,475,188 in 2000, according to a Business Insurance survey of proxy statements filed with the US Securities and Exchange Commission.

This is a 27.3 percent rise over the average compensation made in 1999 among the same list of CEO, although a number did not hold the title of CEO last year, the magazine said.

It added that much of the rise in cash compensation was the result of large bonuses the CEOs received in 2000, the US magazine said, adding that compensation consultants said that more than ever a greater percentage of an insurance industry CEO's cash compensation is made up of short-term variable compensation that is tied to company performance goals. And the same analysts said that even though 2000 was not a spectacular year, it was better than 1999.

The article quoted Thomas Rowe, managing director and head of the insurance recruiting practice for the Americas for Korn/Ferry International in New York as saying: "The wind stopped blowing in 2000, so while 1999 was a particularly tough year, 2000 was a good year for insurance stock."

It added that in addition to a focus on short-term variable pay, CEO's are also being awarded more stock options and grants for restricted stock as long-term incentives to stay with the company and to ensure company profitability.

It said that the shift towards variable pay was a reflection of the insurance industry playing catch up with its financial services counterparts as it looks outside the industry for executive talent.