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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. |
| Its current chairman, Lord Sharman, 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 the departure. Moss made the call to his chairman on Monday from the holiday he had departed for shortly after Thursday's tumultuous annual meeting. | |
| Barrie Cornes, analyst at Panmure Gordon, said: "The move will undoubtedly be welcomed by shareholders and follows a number of events at Aviva that can at best be described as 'unfortunate'. We believe that John McFarlane will conduct a listening exercise with shareholders along with a review of the business. The shares should bounce today on the news of Moss's departure and could rally further if [former RSA chief executive] Andy Haste's name becomes linked to the CEO role." | Barrie Cornes, analyst at Panmure Gordon, said: "The move will undoubtedly be welcomed by shareholders and follows a number of events at Aviva that can at best be described as 'unfortunate'. We believe that John McFarlane will conduct a listening exercise with shareholders along with a review of the business. The shares should bounce today on the news of Moss's departure and could rally further if [former RSA chief executive] Andy Haste's name becomes linked to the CEO role." |
| 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. | |
| The protests coincide with a move by Vince Cable, the business secretary, to hand investors more powers to clamp down on boardroom excess. New measures to make the vote on pay binding, rather than advisory, are expected to be outlined in the Queen's speech on Wednesday. | |
| 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 on Moss and Sharman. | 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 on Moss and Sharman. |
| David Fleming, Unite union's national officer, described Moss's departure "a welcome and important step". | David Fleming, Unite union's national officer, described Moss's departure "a welcome and important step". |
| "Under the disastrous leadership of Andrew Moss Aviva has scaled back its operations resulting in job losses, including the decimation of its Irish workforce and pay suppression for the staff,'" he said. | "Under the disastrous leadership of Andrew Moss Aviva has scaled back its operations resulting in job losses, including the decimation of its Irish workforce and pay suppression for the staff,'" he said. |
| 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. |
| Aviva had attempted to head off a revolt by promising to look again on its policies of "golden hellos" after a signing on fee for new UK director Trevor Matthews infuriated investors, while Moss himself waived a £46,000 pay rise would have taken his salary above £1m. | Aviva had attempted to head off a revolt by promising to look again on its policies of "golden hellos" after a signing on fee for new UK director Trevor Matthews infuriated investors, while Moss himself waived a £46,000 pay rise would have taken his salary above £1m. |