Aviva CEO rejects £1m salary as firm announces pay review
Remuneration committee chairman “disappointed” with failure to act on shareholder concerns.
Aviva has announced that it will review its pay policy for executives joining the company after shareholders raised concerns that remuneration to directors did not “appropriately reflect changes in shareholder value”.
In a statement released this morning (30 April), the company also confirmed that chief executive Andrew Moss has rejected a salary increase that would have been effective from this month and that would have taken his salary from £960,000 to more than £1m.
According to the firm’s latest remuneration report, published alongside its annual accounts in March, Mr Moss’s pay increased from £925,000 in April 2011. For the 2011-2012 financial year he also received a bonus of £1.15m.
The remuneration review for joining executives follows shareholder consternation at the salaries and bonuses granted to two new executives in 2011.
This year’s annual bonus payment to Igal Mayer, chief executive of Aviva Europe, was £631,829, on top of a monthly salary of £605,625. Trevor Matthews, chief executive of Aviva UK, received a bonus this year of £45,000 on top of an annual salary of £720,000.
Scott Wheway, chairman of Aviva’s remuneration committee, said: “We take the views of our shareholders very seriously. I am disappointed that we haven’t done that as well as we should have on this occasion.
“A number of shareholders have indicated that they would like to see a different approach to the way we compensate senior directors on recruitment and an even closer correlation between our pay packages and shareholder returns.
“Having listened to them, we have sought to address their concerns and will continue to engage with them on this matter.”