Aviva Investors sends warning shot over executive pay
Aviva’s fund management arm, Aviva Investors, is reported to have written to the chairmen of every large listed company in Britain warning that they need to be able to justify their executive remuneration policies for 2010.
According to The Times, Aviva Investors holds around 1.5% of every company quoted on the FTSE All-share index and voted against company remuneration policies on more than 800 occasions last year.
In the fall-out from the credit crisis, institutional shareholders such as insurance companies were criticised by MPs for no being influential enough with the boards of UK banks.
The Association of British Insurers admitted that, despite having raised questions with the banks, its members but had not been as effective as they might have been in averting the near collapse of the UK banking sector.
It also emerged that in May 2008, Legal & General Investment Management (LGIM) had been unsuccessful in demanding the resignations of Royal Bank of Scotland (RBS) chairman at the time, Sir Tom McKillop, and chief executive, Sir Fred Goodwin.
The demand came during meetings with members of RBS’s board shortly after the bank had announced its £12 billion rights issue, despite LGIM having been led to understand that the bank had no need to raise capital.
Category: Aviva News, Insurance News
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