Aviva did not award bonuses to executive directors in 2012 and is to freeze executive directors’ base pay in 2013.
In its 2012 Full year results, the insurer showed that it paid its directors £4.77 million in 2012, down from £7.28 million in 2011.
This comes a year after Aviva lost a shareholder vote over its executive pay plans on 3 May 2012.
It has also introduced ‘underpin’ metrics to 2012 bonuses to ensure payouts are more closely aligned to shareholder experience. Aviva will continue these metrics annually until alternative arrangements are agreed.
In the report, Scott Wheway, chairman of the remuneration committee, said: “Our annual bonus plan is based on key financial, employee, and customer performance indicators.
“Solely taking into account performance against these measures at group level (assuming ‘on-plan’ personal performance), the bonus outcomes for 2012 would have been 52% of maximum.
“However, we have taken account of the underpin metrics to ensure bonus outcomes that are better aligned with the creation of shareholder value.
“Following careful consideration of those metrics, the committee decided that executive directors would not receive a bonus for 2012.”