UPDATE 1-Allianz CEO earns $8.6 million in 2012
* Compensation for 2012 6.62 million euros
* Allianz net profit more than doubled in 2012
* Investors eye performance vs high pay (Adds detail on CEO pay, background)
FRANKFURT, March 15 (Reuters) - Allianz Chief Executive Michael Diekmann received a pay package of 6.62 million euros ($8.6 million) last year, his largest ever at the helm of Europe's biggest insurer.
Diekmann's remuneration, including base salary, bonus and pension, pipped the 6.599 million he earned in 2010 and was about a quarter more than he took home in 2011, the company's annual report showed on Friday.
Executive compensation has been increasingly in the spotlight, with investors becoming more demanding that pay reflect performance and politicians criticising super-sized awards.
Allianz posted net profit of 5.2 billion euros in 2012, more than double what it delivered the previous year.
On Friday, it said it expected "a stable or slightly increasing net income" in 2013.
Separately, Spanish bank Santander revealed on Friday it paid 2.8 million pounds ($4.2 million) in so-called "golden hellos" to two new senior executives last year, an example of a practice many investors want stamped out as part of corporate pay reforms.
Allianz officially targets operating profit, where it expects to earn 9.2 billion euros, plus or minus 500 million euros depending on how uncertainties play out, this year.
Operating profit rose 21 percent to 9.5 billion euros in 2012, helped by double-digit growth in its insurance businesses and a one-third increase in operating profit in asset management, as euro crisis fears subsided.
($1 = 0.6643 British pounds)