The chief executive of insurer Aviva, Andrew Moss, has waived his 2012 salary increase as part of a review of its executive pay policy launched in response to pressure from shareholders.
The review will look at whether senior executives' pay is justified by shareholder returns, and will also examine how much Aviva compensates executives who join the firm for benefits they forego in their previous jobs, Aviva said on Monday.
Shares in Aviva, Britain's second-biggest insurer, lost almost a quarter of their value last year, reflecting its exposure to troubled Eurozone economies such as Italy and Spain. That compares with a five per cent fall in the FTSE Life Insurance index and a 12 per cent decline in the Stoxx 600 European insurance index.
"We take the views of our shareholders very seriously," said Scott Wheway, the chairman of Aviva's remuneration committee.
Moss was to have received a salary increase of 4.8 per cent for 2012, equivalent to £46,000.
City A.M. Reporter