Aviva ban on bonuses after it ‘got it wrong’

INSURANCE giant Aviva yesterday revealed it has banned bonuses for 2012 and frozen base pay for its directors this year after admitting that its remuneration committee had “clearly got it wrong” in 2011.

Andrew Moss, the former chief executive who was ousted after a shareholder revolt over remuneration last year, walked way with almost £1.5 million in cash and benefits, including £898,462 in lieu of 12 months notice. In addition, he received £300,000 to settle any claims he might have had on deferred bonuses and share payouts, while he also retained a £209,000 pension payment. The company also paid £25,000 to Moss’s solicitor, who handled the terms of his departure from the group, and £20,000 in “outplacement services”. He was also paid for half a day’s untaken holiday.

Trevor Matthews, former head of the group’s UK business who is stepping down from the board this year, was paid £1m, while finance director Patrick Regan pocketed £1.5m, including a vested 2010 incentive plan bonus totalling £607,302.

The company confirmed that Mark Wilson, the former AIA chief executive who replaced Moss in January, will be paid a similar basic annual salary to Moss of £980,000, as well as an annual bonus for 2013 worth up to £1.5m based on “stretch” performance targets. He will also be in line for a long-term incentive plan payment of up to three times his annual salary.

John McFarlane “did not wish” an increase in the £550,000 paid to him as chairman.