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Aviva boss’s pay more than doubles to £5.7m after bumper profits

18:00 29 March 2016

Aviva CEO Mark Wilson, who has more than doubled his pay packet to £5.7 million after guiding the firm to bumper profits and snapping up rival insurer Friends Life. Photo: Aviva/PA Wire

Aviva CEO Mark Wilson, who has more than doubled his pay packet to £5.7 million after guiding the firm to bumper profits and snapping up rival insurer Friends Life. Photo: Aviva/PA Wire

The chief executive of Aviva has more than doubled his pay packet to £5.7 million after guiding the firm to bumper profits and snapping up rival insurer Friends Life.

Mark Wilson pocketed an annual bonus of £1.8 million on top of a £980,000 salary, as the insurer’s full-year operating profits beat expectations, climbing by a fifth to £2.7 billion.

However, his pay rise was largely driven by a £2.6 million award from the firm’s long-term incentive plan, which paid out for the first time since Mr Wilson joined the company three years ago.

It means his total pay for 2015 - including pension contributions of £280,000 - rose to £5.7 million, up from £2.6 million the year before.

The details of Mr Wilson’s payout comes as the insurer’s chief financial officer Tom Stoddard also saw his total pay packet boosted, rising to £2.9 million from £1.2 million in 2014.

Aviva announced earlier this month that its full-year performance was bolstered by a 24% surge in the value of new business - its twelfth consecutive quarter of growth - while life insurance operating profits stepped up 20% to £2.4 billion.

The company said it was also on course to deliver £225 million-worth of cost savings following its tie-up with Friends Life by the end of 2016 - a year ahead of schedule.

In its annual report, it said the group saw a “strong year” under Mark Wilson’s leadership as he came close to beating all of the company’s financial targets. It also said the takeover of Friends Life was “another major achievement” which made the group stronger.

Aviva bought Friends Life for £5.6 billion in April last year, sealing the industry’s biggest merger since 2000 and creating a group comprising 31,500 employees.

The insurer previously announced that the deal would trigger the loss of about 1,500 jobs, almost 5% of its workforce.

The company said at the beginning of the month that it had a Solvency II coverage ratio of 180% and a surplus of £9.7 billion under the new Solvency II rules, which require insurance companies to prove they can withstand a shock of the scale seen during the last financial crisis.

It added that, despite the impact of the recent floods, it had stepped up the combined ratio of its general insurance business to 94.6% - its best for nine years.

8 comments

  • Yep, we are all in it together.

    Report this comment

    arfur

    Wednesday, March 30, 2016

  • It's funny when you work at a place like that you think everything you do is soo important. Then you leave and find no one in the real world cared one little bit. Trust me the customer really isn't crying out for that new product or service. They really don't care.

    Report this comment

    Resident Smith

    Tuesday, March 29, 2016

  • Hmm..... And last year when I had a pension mature Aviva took over £700 off without mention or explanation, and it took 4 emails and digging my heals in for an explanation before they conceded they'd 'made an error'. I call it 'white collar crime' and remuneration like this does nothing to convince the average man in the street regarding the integrity or otherwise of companies such as this.

    Report this comment

    Considered View

    Tuesday, March 29, 2016

  • Hmm..... And last year when I had a pension mature Aviva took over £700 off without mention or explanation, and it took 4 emails and digging my heals in for an explanation before they conceded they'd 'made an error'. I call it 'white collar crime' and remuneration like this does nothing to convince the average man in the street regarding the integrity or otherwise of companies such as the this.

    Report this comment

    Considered View

    Tuesday, March 29, 2016

  • Nice one. By the time we're all obliged to pay for private health insurance, it'll easily be treble that.

    Report this comment

    catharthis

    Tuesday, March 29, 2016

  • Shocking ' I've probably paid 15'000 of that still have to pay an excess thou ,licence to print money or line the pockets of the elite to much profit very little balance .

    Report this comment

    moodyone

    Tuesday, March 29, 2016

  • Boadicea - there is nothing obscene or disgraceful about working hard, getting on in life and being rewarded for you skill, leadership and obvious success!

    Report this comment

    Voice of Reason

    Tuesday, March 29, 2016

  • Whilst it is essential to pay good money to top Chief Executives, paying such an obscene amount as this is utterly disgraceful. Meanwhile many hundreds of thousands of people work for just the minimum wage which, in too many cases, is used as a maximum wage.

    Report this comment

    Boadicea 1959

    Tuesday, March 29, 2016

The views expressed in the above comments do not necessarily reflect the views of this site

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