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| Aviva chief executive steps down after shareholder revolt | Aviva chief executive steps down after shareholder revolt |
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| Andrew Moss is stepping down as chief executive of Aviva in a dramatic boardroom reshuffle just days after shareholders voted down the insurance company's pay policies. | Andrew Moss is stepping down as chief executive of Aviva in a dramatic boardroom reshuffle just days after shareholders voted down the insurance company's pay policies. |
| In the latest example of the "shareholder spring" that is taking place in the City, the insurer is installing its incoming chairman, John McFarlane, as an executive deputy chairman immediately, and as executive chairman from 1 July while a successor for Moss is found. | In the latest example of the "shareholder spring" that is taking place in the City, the insurer is installing its incoming chairman, John McFarlane, as an executive deputy chairman immediately, and as executive chairman from 1 July while a successor for Moss is found. |
| Investors had become frustrated with the tenure of Moss and he endured a rowdy annual meeting last Thursday when 60% of investors failed to support the remuneration. Investors may be alarmed by a line in Aviva's announcement on Tuesday that "the financial terms" of Moss's departure will be announced at a later date. | Investors had become frustrated with the tenure of Moss and he endured a rowdy annual meeting last Thursday when 60% of investors failed to support the remuneration. Investors may be alarmed by a line in Aviva's announcement on Tuesday that "the financial terms" of Moss's departure will be announced at a later date. |
| Aviva's current chairman, Lord Sharman – who is due to leave next month – said Moss had approached him with the decision to leave as "he felt it was in the best interests of the company that he step aside to make way for new leadership". Aviva shares rose 3% in early trading to 311.5p after news of departure hit the stock exchange screens. | |
| Moss had been due to address shareholders and City analysts at an Aviva strategy day on 24 May and would have faced further questions about his stewardship of the insurer, whose share price has fallen 60% since he took the helm in July 2007. That investor day has been postponed. | Moss had been due to address shareholders and City analysts at an Aviva strategy day on 24 May and would have faced further questions about his stewardship of the insurer, whose share price has fallen 60% since he took the helm in July 2007. That investor day has been postponed. |
| At the annual meeting some 10% of investors had failed to back the reelection of Moss to the board. M&G, the investment arm of Prudential which holds just under 3% of the stock, is thought to be among the investors to have abstained against him and the chairman, Lord Sharman. | |
| McFarlane, who briefly sat on the board of Royal Bank of Scotland and is best known for running ANZ in Australia, said: "I feel I can make a real difference. My first priorities are to regain the respect of our shareholders by eliminating the discount in our share price and to find internally or externally the very best leader to be our future chief executive. I will meet all of the major investors over the coming days and weeks." | McFarlane, who briefly sat on the board of Royal Bank of Scotland and is best known for running ANZ in Australia, said: "I feel I can make a real difference. My first priorities are to regain the respect of our shareholders by eliminating the discount in our share price and to find internally or externally the very best leader to be our future chief executive. I will meet all of the major investors over the coming days and weeks." |
| He set out new priorities for the group — under the headings: focus, financial strength, performance and stakeholders — and is likely to face tough meetings with shareholders in the days ahead. | He set out new priorities for the group — under the headings: focus, financial strength, performance and stakeholders — and is likely to face tough meetings with shareholders in the days ahead. |
| The departure of Moss comes amid fresh investor activism in the City — David Brennan, chief executive of AstraZeneca, and Sly Bailey, chief executive of Trinity Mirror, have both stepped aside in recent weeks after shareholders became disgruntled with their performance. Protests have also been registered at companies as diverse as Barclays, Man Group and Xstrata. Bookmaker William Hill holds its annual meeting on Tuesday and is expected to face protests over pay. |