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Aviva loses shareholder vote on executive pay
by Jun Merrett on May 03, 2012 at 17:44
Life company Aviva has lost the shareholder vote on executive pay at its annual general meeting (AGM).
Around 54% of shareholders who voted at the AGM voted against Aviva’s remuneration report which has attracted anger from investors since it was first published in March.
In April the Pensions & Investment Research Consultants (Pirc) joined the Association of British Insurers (ABI) in recommending that investors should reject the group’s remuneration report at its annual meeting on 3 May because of the generous packages handed to directors.
Following shareholder concern Aviva announced that it would review its process of setting executive pay levels.
Much of investors’ umbrage was focussed on the pay package granted to former Standard Life UK boss Trevor Matthews (pictured) who became UK chief executive at Aviva last year and received a £2.5 million 'golden hello', £2 million in shares and £470,000 in cash.
Matthews received £58,154 for his first month’s work at Aviva, alongside a £45,000 bonus.
Investor anger over executive pay resulted in Andrew Moss, chief executive of Aviva Group deciding not to accept the salary increase he was granted in 2012.
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