Aviva CEO turns down £3.4m bonus...but accepts £3m instead

10th Apr 2015 15:11

Mark Wilson, chief executive of insurance company Aviva, has elected not to receive his full £3.4m bonus after shareholder pressure.The FTSE 100 company, which is currently tying up the loose ends of its £5.6bn takeover of rival Friends Life, said that Wilson and finance director Tom Stoddard both decided not to accept the long-term incentive plans (LTIP) that had been proposed by the board.Wilson was due to receive 2015 LTIP awards of 350% of his basic salary and Stoddard 250% as part of Aviva's remuneration policy, which was signed off by shareholders in 2014. According to Aviva's annual report, Wilson's basic salary for 2013 and 2014 stood at £0.98m.After turning down the original proposals, Wilson was instead offered a bonus of 300% his salary and Stoddard 225% of his, which both have accepted.Director Patricia Cross, chairman of Aviva's remuneration committee, said the company had received "significant shareholder support" for its remuneration report due to its strong financial performance in 2014.March's full year results showed strong progress, with a 6% rise in 2014 operating profit to £2.17bn in the face of negative currency headwinds, leading to a 10% increase in operating earnings per share."However," Cross added, "the board was disappointed to receive feedback this week from a shareholder voting agency which expressed concern over the proposed LTIP awards, despite the tangible progress made by the management team and the award being within the company's remuneration policy."Wilson's total pay, according to the recently released 2014 remuneration report, is also comprised of a bonus of £1.27m, one third of which is paid in cash with the rest paid in shares deferred for three years, as well as the incentive-based LTIP of £2.9m for that year.