In recent discussions with our shareholders following the publication of Aviva’s remuneration report on 21 March 2012, a number of them have voiced concerns about some elements of the report.
These concerns have mainly centred on how we structure the compensation paid when we recruit executive directors and whether overall levels of remuneration, driven by the operating performance in 2011, appropriately reflect changes in shareholder value through the year.
The Remuneration Committee believed that the proposed levels of remuneration were appropriate reward for Aviva’s operating performance and strategic progress in 2011, as well as for attracting and retaining key executive directors, and accordingly were in shareholders’ long term interests.
However reflecting on shareholder feedback, the Remuneration Committee has agreed to review how Aviva will compensate future joining executives for the loss of entitlement from their previous role. In addition, the Committee has accepted Mr Moss’s decision not to accept the salary increase granted to him in 2012.
We will continue to consult with shareholders on executive remuneration.
Scott Wheway, Chairman of the 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.”
Notes to editors:
- Aviva provides 43 million customers with insurance, savings and investment products.
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- We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
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