Aviva 2002 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2002 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Share awards continued
Market price Market price
At Awards Awards Awards At at date at date
1 January granted vesting lapsing 31 December awards awards
2002 during year during year during year 2002 granted vested
Number Number Number Number Number p p Vesting date
Philip Twyman
CGU Deferred Bonus Plan
– 1999 3,824 – 3,824 – –967.0 465.0 Aug 2002
– 2000 4,259 – – – 4,259 875.0 – March 2003
CGNU Integration Incentive Plan 41,138 – 41,138 – –960.0 762.0 March 2002
Aviva Long Term Incentive Plan
– 2001 41,666 – – – 41,666 949.5 – March 2004
– 2002 – 57,441 – – 57,441 739.0 – March 2005
Aviva Deferred Bonus Plan
– 2001 21,666 – – – 21,666 949.5 – May 2004
– 2002 – 34,464 – – 34,464 739.0 – March 2005
Tony Wyand
CU Long Term Incentive Plan 3,057 – 3,057 – –848.0 717.0 Feb 2002
CGU Deferred Bonus Plan 4,593 – 4,593 – –967.0 485.0 Oct 2002
CGNU Integration Incentive Plan 44,429 – 44,429 – –960.0 762.0 March 2002
Aviva Long Term Incentive Plan
– 2001 45,000 – – – 45,000 949.5 – March 2004
– 2002 – 60,704 – – 60,704 739.0 – March 2005
Aviva Deferred Bonus Plan
– 2001 20,700 – – – 20,700 949.5 – May 2004
– 2002 – 52,206 – – 52,206 739.0 – March 2005
Current plans
The Aviva Long Term Incentive Plan was approved by shareholders at the 2001 Annual General Meeting. Awards under the plan are
made on an annual basis and the 2002 award was made in March. Awards are subject to the attainment of performance conditions
over a three-year performance period as described on page 36.
The Aviva Deferred Bonus Plan was approved by shareholders at the 2001 Annual General Meeting and replaced the CGU Deferred Bonus
Plan. 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 in 2002, and also the matching awards granted on a “one for one” basis. The awards are not subject to performance
conditions and vest on the third anniversary of their grant.
Closed plans
The CU Long Term Incentive Plan is the Commercial Union plan approved by shareholders in 1997. Awards were granted that year but,
as a result of the merger with General Accident in 1998, no further awards were made under the plan. The awards vested at the end
of their relevant performance periods (1999 and 2000) and, in accordance with the terms of the plan, half of the vesting shares were
transferred to the participants immediately with the balance transferred two years later. The award referred to in the above table is
the remaining half of the award which vested in 2000 and which was transferred to the participant during the year.
The CGU Deferred Bonus Plan was approved by shareholders in 1999. Awards under this plan were granted to participants in lieu of
some or all of the cash bonuses earned under the annual cash bonus plan. This plan, which operated in respect of bonuses awarded in
1999 and 2000, was replaced by the Aviva Deferred Bonus Plan referred to above. Awards vest on the third anniversary of their grant.
The CGNU Integration Incentive Plan relates to the merger of CGU and Norwich Union, and was approved by shareholders at the
2001 Annual General Meeting. The Plan had two parts – a share award aimed at incentivising management to exceed the estimated
annualised cost savings to result from integrating the businesses, and a cash-based award aimed at focusing management on the
operating performance of the Group or Business Unit as appropriate during the integration process. The performance conditions relating
to both parts of the plan were achieved. Details are as follows:
Share award – The performance condition attaching to this part of the plan was to exceed the estimated annualised cost savings of
£275 million, which was announced to the market in August 2000, by at least 10%. The actual annualised cost saving achieved was
£317 million whilst the additional one-off cost which arose from generating the increased annualised cost savings was within the target.
As a result of the performance condition being met, the shares referred to in the above table, which were awarded in September 2000,
vested in March 2002.
41 Aviva plc
Annual report + accounts 2002