Aviva chief picks up £1.42m pay package

By Katherine Griffiths
Thursday 27 March 2003 01:00

Richard Harvey, chief executive of Aviva, pocketed £1.42m in pay and bonuses in 2002 and saw his pension fund accrue to a total £4.5m in a year that saw the insurance company's shareholders and policyholders feel the pain of dire equity markets.

Aviva's annual report showed Mr Harvey's total pay package rose 45 per cent compared with 2001, as he benefited from a one-off payment of £320,000 for hitting cost savings targets from integrating Norwich Union and CGU on top of his remuneration for the 12 months to 31 December.

The transfer value of 52-year-old Mr Harvey's pension increased by £219,000. If he were to retire now, that would provide an annual pension of about £290,000.

Aviva, Britain's largest insurer, increased the pension pot of Mike Biggs, finance director, to a total of £1.15m. He was paid £1m, up from £602,000 in 2001.

While the sums did not exceed salaries paid to directors at Aviva's competitors, they will provide cold comfort to its shareholders and customers. Aviva slashed its dividend by 40 per cent last year and has cut bonuses for 3.3 million policyholders.

On Wednesday Legal & General's annual report showed its chief executive, David Prosser, amassed a pension worth £6.6m. Mr Prosser, 58, saw his total remuneration increase from £1.34m to £1.56m. Tim Breedon, 44, who joined L&G's board as investment director in January 2002, received £631,000 plus a cash bonus of £44,167 deferred from 2000.

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