Aviva – AGM 26 May 2020
Item 2: Remuneration report
The 2019 total variable remuneration of 384% of base salary is above our limit of 300%. However, its targets are sufficiently challenging to accept our higher limit of 450% of salary. The positive features of the remuneration overwhelm our moderate concerns mentioned above. The remuneration is weighted more towards rewarding long-term performance, the payout is adequately aligned with performance, and the quantum is not excessive. Accordingly, we recommend to vote FOR.
Item 3: Final dividend withdrawn
On 8 April 2020, Aviva announced the withdrawal of its 2019 final dividend of 21.4p to ordinary shareholders. Regulatory authorities, including EIOPA, the PRA and supervisors of other Aviva subsidiaries, have responded by publicly urging restraint on dividend payments by insurers to shareholders. In light of the significant uncertainties presented by Covid-19, Aviva agrees that it is prudent to suspend dividend payments on its ordinary shares. The Board expects to reconsider any distributions in the fourth quarter of 2020.
Items 23, 24 and 25: Purchase of own ordinary and preference shares
The total amount of all authorised purchases is 27% of the capital (£2.5bn at the current market cap), we consider this excessive especially regarding to the current Covid-19 situation. ECGS considers that it is not the right moment to proceed to a new share buyback programme especially when the Company cancelled the dividend distribution.
Aviva is a holding company. Through its subsidiaries, Co. provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Co.'s long-term insurance businesses provide a range of life insurance and savings products, which include annuities, equity release, pensions, protection, bonds and savings, and investment sales. Co.'s general insurance business operates under the Aviva brand and focuses on personal lines, commercial lines, health insurance, and corporate and specialty risks. Co.'s Aviva Investors, its asset management business, provides asset management services to Co.'s long-term insurance and savings, among others.
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