A controversial new pay deal for Suncorp CEO John Mulcahy will remove all his performance hurdles and increase his pay in a deal likely to rile shareholders.

The Suncorp board wants to remove all performance benchmarks from Mr Mulcahy's 2004 and 2005 shares, valued at $4.6 million, provided he stays head of the company until 2010.

Mr Mulcahy will also receive a $200,000 pay rise, taking his base remuneration to $2 million. As a long-term incentive, an additional 180,000 shares have been given to Mr Mulcahy without shareholder approval.

Performance hurdles for other executives for the same years will also be waived, involving a value of about $4.2 million.

Suncorp shareholders must vote on the pay package at the company's AGM on October 31. The Australian Council of Super Investors, representing $250 billion of managed funds, is encouraging members to vote against it.

Since announcing the takeover of Promina in October last year, Suncorp's shares have fallen more than 10%.