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Advisers: Aviva chief exec should only be rewarded for ‘exceptional performance’

Mark Wilson Aviva

Advisers say incoming Aviva chief executive Mark Wilson should only be awarded bonuses if he achieves “exceptional performance over a sustained period”, after the provider revealed his remuneration package is worth up to £5.4m.

Former AIA Group chief executive and president Wilson will join the Aviva board on 1 December before becoming chief executive on 1 January.

Wilson (pictured) replaces Andrew Moss, who left Aviva in May.

He will receive a basic salary of £980,000 and will be eligible for a 2013 annual bonus worth up to 150 per cent of his salary.

Wilson will also be eligible for an award under Aviva’s long term incentive plan for 2013 of 300 per cent of basic salary.

Bloomsbury Financial Planning senior partner Jason Butler says: “The bonus package should reward exceptional performance over a sustained period and be adjusted for any problems or mistakes.”

FSC Investment Services managing director Frank Cochran says: “I do not have a problem with people getting paid a big bonus as long as they have earned it. Equally if he makes a mess of things he should be paid nothing.”

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  1. Aviva’s board (who are supposed to represent the shareholders) originally supported the previous CEO in his demands for remuneration increases. The shareholders voted against and as a result the Board continued to represent the interests of the shareholders by making a huge pay off to the outgoing CEO, as he became.

    The message is clear, the Board do not represent the shareholders, the company has to to the dogs, and failure is rewarded. It would be interesting to see what the targets are for the new CEO and to what extent he has to meet those targets to justify his bonus. Based on the bonuses paid to the last CEO I suspect that if he can tie his shoelaces this will be enough to warrent the full bonus.

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