Aviva chief enjoys pay boost despite profits slump

Several companies slipped out their annual reports on budget day, with the insurer Aviva announcing that Andrew Moss, its chief executive, collected a pay and perks package worth up to £5m last year, even though company profits fell. Richard Solomons, head of Intercontinental Hotels, was paid a total of £1.1m, up from £996,000 in 2010 after the company disclosed a 26% increase in profits. Aviva, the UK's second-biggest insurer, recently announced a pre–tax profits slump to £87m last year, compared with £2.4bn in 2010, due to "adverse unrealised investment variances". These included a £726m charge relating to its holding in Delta Lloyd, the Dutch insurer it once owned. Moss saw his basic salary jump nearly 4% to £980,000; he is also in line for £2.5m under a longer-term incentive plan, or 275% of his salary, if certain targets are met. Other perks come to about £1.6m. Moss continues to receive 2% of basic salary as a non-pensionable cash supplement provided in consideration of his surrendering an unapproved retirement scheme. He also gets a £19,000 "cash car allowance". Aviva said the company met key financial targets last year, with the operating performance improving. Moss will receive share bonuses only if "stretching targets" are met.