Aviva to review new directors' pay after anger over Matthews' bonus

Life company Aviva is to review the pay packages it offers incoming directors in the wake of investor anger over the remuneration of executive director of developed markets Trevor Matthews who joined last year.

Former Standard Life UK boss Matthews joined as UK chief executive receiving a £2.5 million ‘golden hello’ getting £2 million in shares as well as £470,000 in cash.

Matthews received £58,154 for his first month’s work at Aviva, alongside a £45,000 bonus.

Last week it was reported that 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.

Aviva said in statement: ‘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.’

‘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.’

The note from Aviva also revealed that group chief executive Andrew Moss had decided not to accept the salary increase he was granted in 2012.