Aviva 2013 Annual Report Download - page 98

Aviva plc
Annual report and accounts 2013
96
Directors’ remuneration report continued
Appointment of Chief Financial Officer
Aviva announced the appointment of Tom Stoddard as CFO on 28 February 2014. Mr Stoddard is currently expected to join the
Company on 5 May 2014. Details of his remuneration were announced at the time, and are as follows:
 Basic salary – £675,000 per annum next subject to review in 2015
 Annual bonus – 75% of basic salary for plan performance and up to 150% of basic salary for stretch performance. Two thirds
of any bonus awarded is currently required to be deferred into Aviva shares for three years
 LTIP – Eligible for an LTIP grant with a face value of up to 350% of basic salary. The LTIP is subject to performance conditions
and vests after three years to the extent that those conditions have been met. His 2014 grant will be at 225% of basic salary
 Buyout – On a strict “like for like” basis he will be eligible to receive a buyout up to a maximum level of £1 million gross to
replace deferred compensation he has forfeited on resignation from his previous employer
 Relocation expenses – He may claim reasonable relocation expenses up to a maximum of £200,000 (inclusive of any benefit in
kind liability that may arise) in respect of relocation from the US to the UK
 Benefits – A cash car allowance and PMI cover for himself and his family
Single total figures of remuneration for 2013 – executive directors (audited information)
Table 8 below sets out in the required form the total 2013 remuneration for each of our EDs who served with the Company
during 2013.
Table 8: Total 2013 remuneration – Executive Directors
Basic salar
y
Benefits Annual bonus
4
LTIP5 Pension7 Total
2013
£000
2012
£000
2013
£000
2012
£000
2013
£000
2012
£000
2013
£000
2012
£000
2013
£000
2012
£000
2013
£000
2012
£000
Executive Directors
Mark Wilson1 980 — 239 — 1,103 — — — 293 — 2,615 —
Patrick Regan2 720 699 37 34 — — — 4906 199 193 956 1,416
Former executive director
Trevor Matthews3 311 720 16 85 — — 450 — 92 212 869 1,017
Total emoluments of
executive directors 2,011 1,419 292 119 1,103 — 450 490 584 405 4,440 2,433
Notes
1 Mark Wilson joined the Board with effect from 1 December 2012, and became Group CEO on 1 January 2013. He received no emoluments in respect of 2012.
2 Patrick Regan tendered his resignation as CFO on 22 January 2014 and will leave the Board and the Group before the AGM, and so received no bonus award for 2013. His LTIP awards granted in 2011, 2012 and 2013 will lapse.
3 Trevor Matthews left Aviva on 6 June 2013 and so 2013 figures represent the period up to that date.
4 Bonus payable in respect of the financial year including any deferred element at face value at date of award.
5 Value of the LTIP for 2013 relates to the 2011 award, which had a three year performance period ending on 31 December 2013. 34.48% of the award will vest in March 2014. An assumed Aviva ordinary share price of 431.9 pence
has been used to determine the value of the award based on the average share price over the final quarter of the 2013 financial year.
6 The LTIP value for Patrick Regan for 2012 has been updated to reflect the actual value at vesting of the award. The figure previously disclosed was £607,302.
7 Pension contributions consist of employer contributions into the defined contribution section of the Aviva Staff Pension Scheme, excluding salary exchange contributions made by the employees, plus payments in lieu of pension
above the lifetime or annual allowance caps.
Additional disclosures in respect of the single total figure of remuneration table
(audited information)
Benefits
The benefits disclosure includes the cost where relevant of private medical insurance, life insurance, accommodation, travel and car
benefits. In the case of Patrick Regan this also includes benefits resulting from the Aviva Savings Related Share Option Scheme (SAYE
Scheme), as described below, which has been valued based on the monthly savings amount (£250) and the discount provided (20%). All
the numbers disclosed include the tax charged on the benefits, where applicable. As disclosed in the 2012 DRR, Mark Wilson was
able to claim benefits of £200,000 inclusive of benefit-in-kind charges, against appropriate receipts or other evidence of
expenditure, in respect of his relocation from Hong Kong to the UK.
Annual bonus
Table 9 below sets out the Group’s performance against its 2013 KPIs. It also shows how these outcomes have translated into
bonus payments. Details of the actual targets have not been disclosed as they are deemed to be commercially sensitive.
Table 9: Group 2013 performance against its KPIs
Weighting (% of total
bonus opportunit
y
)
Business measures (70%)
Ke
y
performance indicators
Plan
(%)
Stretch
(%)
Actual
outcome
(%)
Net capital returns 10 13.75 12.47
IFRS profit before tax 7.5 20 20.00
MCEV value of new business 3.5 7.75 7.75
Combined operating ratio 1.5 3.5 0
Total expenses 2.5 5 5
Customer 5 10 2.32
Employee 5 10 0
Total 35 70 47.54