Aviva boss walks away with £6m
Chief set for bonanza despite getting push
THE boss of insurance giant Aviva is in line for a potential £6million golden goodbye – despite being given the boot.
Mark Wilson paid the price for not making enough money for the company’s shareholders.
The no-nonsense New Zealander is credited with turning the business around after becoming its chief executive in 2013. During his time in charge Wilson, 52, led the takeover of Friends Life, halved the number of markets Aviva operates in, and improved profits.
But Aviva’s share price is up 25% since 2013, compared with 61% for the wider insurance sector within the FTSE 100. The firm also agreed to pay investors £14m earlier this year over botched plans involving its preference shares.
Wilson stepped down yesterday and will be put on gardening leave for six months. Despite getting the chop he is entitled to a bumper payoff, including a year’s salary of £1m, £3.5m in shares and a possible £1.4m annual bonus.
He will also get £10,000 towards legal fees linked to his departure.
Chairman Sir Adrian Montague will assume executive responsibilities while Aviva launches the hunt for a new CEO.
Wilson said in a statement: “When I joined Aviva, the company was in poor health. Aviva is very different today.
“I’ve achieved what I wanted to achieve and now it’s time for me to move on to new things.”
Montague said: “We have agreed with Mark this is the right time for a new leader to ensure Aviva delivers to its full potential.”
Aviva was formed from the merger of Norwich Union and CGU Insurance in 2000 but can trace its roots back to the Hand in Hand insurance company established in 1696, which was 30 years after the Great Fire of London.