Aviva 2014 Annual Report Download - page 101

Aviva plc Annual report and accounts 2014
97
Employment contracts and letters of appointment
ED employment contracts and NED letters of appointment are available for inspection at the Company’s registered office during normal
hours of business, and at the place of the Company’s 2015 AGM from 10.45 am on 29 April 2015 until the close of the meeting.
The key employment terms and conditions of the current EDs, and those who served during the year, as stipulated in their employment
contracts, are set out in table 3 below.
Table 3: Executive Directors’ conditions of employmen
t
Provision Policy
Notice period
By the ED
By the Company
6 months.
12 months, rolling. No notice or payment in lieu of notice to be paid where the Company terminates for cause.
Termination payment Pay in lieu of notice up to a maximum of 12 months’ basic salary.
Any payment is subject to phasing and mitigation requirements. An ED would be expected to mitigate the loss of office by
seeking alternative employment. Any payments in lieu of notice would be reduced, potentially to zero, by any salary
received from such employment.
In the case of Mr Wilson, if his employment were to be terminated by the Company, other than for cause, by the end of
2015 then he would be entitled to be reimbursed against evidenced expenditure for reasonable and appropriate costs
incurred in relocating outside the UK up to a maximum of £100,000, inclusive of any tax liability.
Remuneration and benefits The operation of the annual bonus and LTIP is at the Company’s discretion.
Expenses Reimbursement of expenses reasonably incurred in accordance with their duties.
Car allowance A cash car allowance is received, as varied from time to time.
Holiday entitlement 30 working days plus public holidays.
Private medical insurance Private medical insurance is provided for the ED and his family. The ED can choose to opt out of this benefit or take a
lower level of cover. However, no payments are made in lieu of reduced or no cover.
Other benefits Other benefits include private medical insurance and participation in the Company’s staff pension scheme.
Sickness 100% of basic salary for 52 weeks, and 75% thereafter for a further 52 weeks.
Non-compete During employment and for six months after leaving (less any period of garden leave) without the prior written consent of
the Company.
Contract dates Director:
Mark Wilson
Tom Stoddard
Patrick Regan1
Date current contract commenced:
1 January 2013
28 April 2014
22 February 2010
Notes
1 Mr Regan tendered his resignation as CFO on 22 January 2014 and left the Company on 28 March 2014.
Policy on payment for loss of office
There are no pre-determined ED special provisions for compensation for loss of office. The committee has the ability to exercise its
discretion on the final amount actually paid. Any compensation would be based on basic salary, pension entitlement and other contractual
benefits during the notice period, or a payment made in lieu of notice, depending on whether the notice is worked.
Where notice of termination of a contract is given, payments to the ED would continue for the period worked during the notice period.
Alternatively, the contract may be terminated and phased monthly payments made in lieu of notice for, or for the balance of, the 12
months’ notice period. During this period, EDs would be expected to mitigate their loss by seeking alternative employment. Payments in
lieu of notice would be reduced by the salary received from any alternative employment, potentially to zero. The Company would typically
make a reasonable contribution towards an ED’s legal fees in connection with advice on the terms of their departure.
There is no automatic entitlement to an annual bonus for the year in which loss of office occurs. The committee may determine that an
ED may receive a pro rata bonus in respect of the period of employment during the year loss of office occurs based on an assessment of
performance. Where an ED leaves the Company by reason of death, disability or ill health, or any other reason determined by the
committee, there may be a payment of a pro rata bonus for the relevant year at the discretion of the committee.
The treatment of leavers under our ABP and LTIP is determined by the rules of the relevant plans. Good leaver status under these plans
would be granted in the event of, for example, the death of an ED, or their departure on ill health grounds. Good leaver status for other
leaving reasons is at the discretion of the committee, taking into account the circumstances of the individual’s departure, but would
typically include planned retirement. In circumstances where good leaver status has been granted, awards may still be subject to malus
and clawback in the event that inappropriate conduct of the ED is subsequently discovered post departure. If good leaver status is not
granted, all outstanding awards will lapse.
Governance
Aviva plc Annual report and accounts 2014 |97