Aviva 2002 Annual Report Download - page 52

Directors’ remuneration in 2002
This section of the Report (which has been subject to audit) sets out the remuneration which was paid to the directors during the year to
31 December 2002. As a result of recent mergers, there are a number of incentive plans of the former companies, which are now closed
but under which some awards/options remain outstanding.
Executive Directors
Salary and bonuses
The remuneration payable to executive directors who held office for any part of the financial year in respect of 2002, including amounts
paid to them as directors‘ of subsidiary undertakings, was as follows:
Basic salary Bonuses (note 1) Benefits (note 2) Total
2002 2001 2002 2001 2002 2001 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Mike Biggs 437 402 163 183 147 17 747 602
Richard Harvey 691 636 258 287 70 55 1,019 978
Philip Scott 437 396 163 175 136 124 736 695
Patrick Snowball 376 263* 145 109 17 123 538 495
Philip Twyman 451 423 178 140 16 16 645 579
Tony Wyand 476 451 181 208 21 22 678 681
*From date of appointment.
Notes
(1) “Bonuses” include amounts earned under the Annual Bonus Plan (including amounts deferred under the Aviva Deferred Bonus Plan) in respect of performance
in 2002 and the value of shares granted under the free share part of the Aviva All-Employee Share Ownership Plan in respect of 2002 performance. Also paid to
directors during the year were one-off incentive bonuses relating to prior years performance periods, i.e. the one-off cash award made in March 2002 under the
CGNU Integration Incentive Plan and the one-off cash award made in March 2002 based on the Norwich Union Restricted Share Plan, as set out below.
Integration Integration
incentive incentive Restricted Restricted Total Total
plan* plan* share plan* share plan* Emoluments Emoluments
2002 2001 2002 2001 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000
Mike Biggs 200 –57 –1,004 602
Richard Harvey 320 –82 –1,421 978
Philip Scott 207 –55 –998 695
Patrick Snowball 166 –41 –745 495
Philip Twyman 143 –––788 579
Tony Wyand 195 –––873 681
*One-off awards – Plans now closed. Details of these plans are contained on pages 41 and 42 below.
(2) 2002 Benefits. All the executive directors received the benefit of a company car allowance and private medical insurance. In respect of Mike Biggs the amount
disclosed includes benefit in kind charges in respect of the provision of accommodation in London. The disclosure for Philip Scott includes benefit in kind charges in
relation to accommodation in York where a significant part of Norwich Union Life’s operations are based and relocation expenses reimbursed by the Company
relating to the purchase of a property in London where Philip Scott needs to be located to fulfil his executive duties. A charge relating to the benefits which cannot
be provided from the pension scheme as a result of the ’earnings cap‘ is also included in respect of Richard Harvey and Mike Biggs.
Pension benefits
During the year each of the directors accumulated pension benefits under the defined benefits section of the Group’s pension scheme
for UK employees. The Directors’ Remuneration Report Regulations 2002 require disclosure of defined benefit pension arrangements on
a different basis to that specified in Section 1 of the Combined Code. Details on both basis are set out below.
Directors’ Remuneration Report Regulations Combined Code
Increase in Increase in
Pension Increase in transfer Pension Increase in transfer
accumulated pension Transfer value value Age at accumulated pension value
2002 2002 2002 2001 2002 31 December 2002 2002 2002
£’000 £’000 £’000 £’000 £’000 2002 £’000 £’000 £’000
Mike Biggs 123 28 1,150 1,098 52 50 123 27 249
Richard Harvey 403 61 4,536 4,317 219 52 403 55 618
Philip Scott 241 40 2,109 2,230 (121) 48 241 36 317
Patrick Snowball 126 29 1,431 1,224 207 52 126 27 309
Philip Twyman 94 22 1,803 1,352 451 58 94 20 388
Tony Wyand 318 17 6,311 5,786 525 59 318 12 230
Disclosed for each director is the “pension accumulated”, being the amount of pension to which the director would be entitled to on
leaving service at 31 December 2002. Under the Combined Code the “increase in pension” is the increase during the year net of
inflation and the increase in the “transfer value” represents the transfer value of that increase. Under the Directors’ Remuneration Report
Regulations the “increase in pension” relates to the difference between the accumulated pensions at the end of 2001, and 2002. Also
disclosed is the “transfer value” of the accumulated pensions at 31 December 2002 and 2001. The “increase in transfer value” for 2002
is the difference between these values, and represents an obligation on the pension fund (where funded) or the Company (where
unfunded) – they are not sums paid or due to the director. Although the director may have had an increase in pension benefits over the
year, the fall in equity markets since the beginning of 2002 may have resulted in a reduced transfer value.
Payments to former directors
No payments or awards were made to former directors during the year, and no former directors received any increase in retirement
benefits in excess of the amount to which they were entitled on the later of the date when the benefits first became payable or
31 March 1997. No compensation for loss of office was made to any director, or former director, during the year.
Directors’ remuneration report continued
38 Aviva plc
Annual report + accounts 2002