Aviva is considering the unprecedented move of docking the pay of some of its non-executive directors after the preference shares row of 2018 and the company’s censure by regulators last month.
George Culmer, chairman of the insurer, has ordered a review by a law firm to examine whether the remuneration of the executives at the time and the non-executives was set appropriately.
All four executive directors, led by Mark Wilson, the chief executive, had bonuses docked last year and have all since left. However, the non-executive directors at the time were not penalised and a promise by Sir Adrian Montague, then the chairman, at the 2018 annual meeting that their pay would also be examined is now to be honoured.
While executives of listed companies occasionally have bonuses reduced or clawed back for failings, non-executive directors are usually spared financial penalties for failings. Governance experts say that since they are generally not paid bonuses for a company’s financial success, they should not be penalised for mistakes.
Several of the non-executives from that time have departed but three remain — Patricia Cross, Belén Garcia and Michael Mire, a former McKinsey senior partner and former Downing Street policy adviser. Last year they received, respectively, £188,000, £198,000 and £121,000 in fees for their part-time roles.
Patrick Hosking, Financial Editor The Times
Monday November 16 2020, 12.01am,