Last year's biggest shareholder pay row, surrounding former Aviva boss Andrew Moss and departing executive Trevor Matthews, has prompted an apology from the insurer to shareholders, writes Simon Bain.
But Mr Moss, who quit under pressure last May, was paid £300,000 "in full and final settlement of all claims that he might have a bonus", while surviving executives received zero bonus for 2012, the annual report has revealed.
"We believe in 2011 we clearly got it wrong," says a letter to shareholders from Aviva's remuneration committee chairman Scott Wheway, published in the report, which also reveals that Mr Wheway's fee went up from £103,000 to £112,000 last year, a rise of 8.75%.
Mr Matthews' imminent departure in May was announced last month, just 14 months after he was paid a £2.5 million "golden hello" to join Aviva from Friends Life, prompting much of the shareholder disquiet. Mr Wheway writes: "We will make any future buyouts on the hire of senior executives on a strict 'like for like' basis, and we will continue a regular dialogue with shareholders."
More than 54% of shareholders voted against Aviva's remuneration report at the annual meeting last May, and Mr Moss resigned a few days later. He was replaced for by chairman John McFarlane, whose £550,000 fee was unchanged. "Andrew Moss received no bonus for 2012," the report insists, while detailing £1.75m of severance payments including the £300,000 to settle "all claims he might have to a bonus under his contract".
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