Aviva 2013 Annual Report Download - page 94

Aviva plc
Annual report and accounts 2013
92
Directors’ remuneration report continued
Consideration of wider employee pay and shareholder views
When determining the remuneration policy and arrangements for our EDs, the committee considers:
 Pay and employment conditions elsewhere in the Group to ensure that pay structures are suitably aligned and that levels of
remuneration remain appropriate. The committee reviews levels of basic salary increases for other employees and executives
based in the UK. It reviews changes in overall bonus pool funding and long term incentive grants. The committee does not
directly consult with employees on pay issues but it does consider feedback from the employee opinion survey. The committee
also takes into account information provided by the HR function and external advisers
 Its ongoing dialogue with shareholders. It seeks shareholder views and takes them into account when any significant changes
are being proposed to remuneration arrangements and when formulating and implementing remuneration policy. It has
consulted broadly on the contents of this policy report.
Non-executive directors
Table 3 below, sets out details of our remuneration policy for NEDs.
Table 3: Remuneration policy for non-executive directors – overview
Element Purpose and link to strate
gy
Operation Maximum opportunit
y
Performance measures
Chairman and
NED’s fees
To attract individuals
with the required range
of skills and experience
to serve as a Chairman
and as a NED.
NEDs receive a basic annual fee
in respect of their Board duties.
Further fees are paid for
membership and, where
appropriate, chairmanship of
Board committees.
The Chairman receives a fixed
annual fee. Fees are reviewed
annually taking into account
market data and trends and the
scope of specific Board duties.
The Chairman and NEDs do not
participate in any incentive or
performance plans or pension
arrangements and do not receive
an expense allowance.
NEDs are reimbursed for expenses,
and any tax arising on those
expenses is settled directly by Aviva.
To the extent that these are
deemed taxable benefits, they will
be included in the annual
remuneration report, as required.
The Company’s articles of
association provide that the
total aggregate remuneration
paid to the Chairman of the
Company and NEDs will be
determined by the Board
within the limits set by
shareholders. The current
aggregate limit of £2 million
was approved by shareholders
at the Company’s 2012 AGM.
N
/
A
Chairman’s Travel
Benefits
To provide the Chairman
with suitable travel
arrangements for him
to discharge his duties
effectively.
The Chairman has access to a
company car and driver for business
use. Where these are deemed a
taxable benefit, the tax is paid by
the Company.
N/A N/A
NED Travel
and
Accommodation
To reimburse NEDs
for appropriate
business travel and
accommodation,
including attending
Board and committee
meetings.
Reasonable costs of travel and
accommodation for business
purposes are reimbursed to NEDs.
On the limited occasions when it is
appropriate for a NED’s spouse or
partner to attend, such as to a
business event, the Company will
meet these costs. The Company will
meet any tax liabilities that may
arise on such expenses.
N/A N
/
A