Aviva 2006 Annual Report Download - page 101

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 97
Performance graph
The following graph compares the TSR performance of the Company over the past five years with the TSR of the FTSE 100 Return Index.
This index has been chosen because it is a recognised equity market index, of which Aviva is a member. The graph also includes the
median TSR of the companies in the comparator group as this is the group against which performance is measured for the purpose
of the Aviva Long-Term Incentive Plan. The companies which compose the comparator group for TSR purposes were amended when
the new Long-Term Incentive Plan was introduced in 2005 so that the group matches more closely the companies which offer similar
products in similar geographic markets to Aviva. The TSR graph for the comparator group has therefore been plotted using the
19 companies (excluding Aviva) in the comparator group pre-2005 and the 14 companies (excluding Aviva) in the group for 2005 and
2006.
The Aviva Annual Bonus Plan was approved by shareholders in April 2005 and it replaced the Aviva Deferred Bonus Plan.
The Aviva Deferred Bonus Plan was approved by shareholders at the 2001 Annual General Meeting. The awards disclosed include those
made in lieu of some or all of the cash bonus earned and deferred under the Company’s Annual Bonus Plan and also the matching
awards granted on a “one-for-one” basis. The vesting of the awards on the third anniversary of their grant is not subject to performance
conditions. This plan was replaced by the Aviva Annual Bonus Plan in 2005 and therefore no awards have been granted under the Plan
since 2005.
The Aviva Share Plan was established in May 2004 specifically to facilitate the recruitment of Andrew Moss. The awards made under
the Plan compensate Andrew Moss for the value of the long-term incentive awards granted to him by his previous employer and which
lapsed when he resigned to join Aviva. Andrew Moss is the only participant in the Plan. On 10 May 2004, the date Andrew Moss joined
the Company, 103,846 shares in the Aviva Employee Trust (with a market value of £540,000) were allocated to him. On 31 October
2004 67,307 of the shares vested, 23,077 vested on 31 December 2005 and the balance of 13,462 vested on 31 December 2006.
The vesting of these shares was not subject to any performance conditions. This plan is now closed.
Aviva five-year TSR performance against the FTSE100 Index
and the median of the Comparator Group
Aviva FTSE 100 Index Comparator Group Median
Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06
TSR
150
125
100
75
50
25
0