Aviva plc (LON:AV) has announced the appointment of Amanda Blanc as Chief Executive Officer with immediate effect.
Amanda is currently an Independent Non-Executive Director at Aviva plc. She was appointed to the Aviva Board in January 2020 and chairs the Customer, Conduct and Reputation Board Committee. She was previously CEO, EMEA & Global Banking Partnerships at Zurich Insurance Group. Prior to that she was Group CEO, AXA UK, PPP and Ireland and has served as Chair of the Association of British Insurers and President of the Chartered Insurance Institute.
For family health reasons Maurice Tulloch, the previous Chief Executive, has today stepped down from the role and retired from his position on the Aviva plc Board. Maurice joined Aviva in 1992 and held a number of senior positions in the business during his time with the Company. He joined the Aviva plc Board in 2017 and was appointed as Chief Executive in March 2019.
George Culmer, Chairman of Aviva, said:
“I would like to thank Maurice for his valuable contribution over many years with Aviva. The Board and I were saddened to hear of the personal reasons behind his desire to step down and we wish him and his family the very best for the future.
“We are delighted that Amanda will be our new CEO. The Board was unanimous in endorsing her appointment. I know she will bring real dynamism to Aviva and re-establish our credentials as a high-performing, innovative and customer-centric business.”
Amanda Blanc, Chief Executive Officer of Aviva, said:
“Aviva is a great company, full of great people, and I’m honoured to be given the opportunity to help shape its future. I want Aviva to be the leader in our industry again and the first choice for our customers and partners. My focus will be on achieving that for the benefit of all of our stakeholders.
“We will look at all our strategic opportunities, and at pace. I have been on the Aviva Board since the start of this year and have a good understanding of where the business has its strengths and what actions we should take across our portfolio.”
In addition to her previous roles at AXA and Zurich, Amanda has held senior positions at Towergate Insurance Brokers and Groupama Insurance Company. She started her career with Commercial Union, which subsequently became part of Aviva.
Following her appointment, Amanda will step down from all of her current Non-Executive commitments. She will continue in her voluntary role as Chair of the Welsh Professional Rugby Board.
Remuneration details can be found at the end of this announcement.
Amanda’s appointment followed a full and independent process led by the Nomination and Governance Committee, supported by a leading search firm. This involved a global search and the assessment of internal and external candidates.
Maurice Tulloch – Remuneration arrangements
As required by section 430(2B) of the Companies Act 2006, details of the remuneration payments made or to be made to Maurice are set out below. These arrangements are consistent with our standard treatment for retirees and comply with the Company’s Directors’ Remuneration Policy, which was approved by shareholders at the 2018 AGM.
Salary and benefits
Maurice has been placed on garden leave with effect from 6 July 2020 until the end of his six-month notice period on 5 January 2021 (the “Termination Date”). During this period, he will be available to assist the Company and his successor, Amanda Blanc, with a planned and orderly transition.
During his six-month notice period, Maurice will receive his normal remuneration payments in terms of salary, pension contributions and cash payments in lieu of pension entitlement, and continue to be entitled to his normal benefits, in accordance with his service agreement.
Maurice will be eligible to receive a pro-rated bonus in respect of the 2020 financial year to reflect the portion of the year prior to the commencement of garden leave. However, in accordance with the statement released by the Company on 16 April 2020, bonus will not be considered for Maurice for 2020 until dividend payments are restarted for ordinary shareholders.
The amount of any bonus will be subject to the satisfaction of the relevant company and personal performance criteria and will be determined by the Remuneration Committee on the normal timetable. In accordance with the Directors’ Remuneration Policy, two-thirds of any bonus will be deferred into an award over shares. The remainder will be paid in cash on the normal bonus payment date.
The Remuneration Committee has determined, in accordance with the rules and the Directors’ Remuneration Policy, that Maurice will be treated as a good leaver in relation to outstanding awards granted to him under the Company’s Long Term Incentive Plan 2011 (“LTIP”) and Annual Bonus Plan 2011 (the “ABP”) by reason of his retirement.
Maurice’s unvested awards under the LTIP will vest on the normal vesting dates, subject to the satisfaction of the relevant performance conditions (measured over the full performance period), time pro-rating and holding periods, as detailed below. No further LTIP awards will be made to him.
|Date of grant||Number of shares subject to award (including dividend equivalents)||Pro-rated maximum number of shares which could vest(1)||Vesting date||End of holding period|
|11 May 2018||341,082||341,082||11 May 2021||Not applicable|
|25 March 2019||748,114||502,159||25 March 2022||25 March 2024|
|23 March 2020||1,277,292||431,596||23 March 2023||23 March 2025|
(1) This reflects time pro-rating, but the number of shares which vest will be subject to the achievement of performance conditions and will be further reduced if group performance targets are not achieved.
Maurice’s outstanding deferred share awards under the ABP, which reflect past performance, will continue and will vest on the normal vesting dates, as detailed below:
|Date of grant||Number of shares subject to award (including dividend equivalents)||Vesting date(s)|
|26 March 2018||125,993||26 March 2021|
|25 March 2019||101,988||33,996 shares vest on 27 March 2020|
33,996 shares vest on 26 March 2021
33,996 shares vest on 25 March 2022
|23 March 2020||258,024||86,008 shares vest on 26 March 2021|
86,008 shares vest on 25 March 2022
86,008 shares vest on 23 March 2023
All LTIP and ABP awards will remain subject to malus and clawback provisions.
Maurice’s outstanding option under the Save-As-You-Earn over 6,338 shares will, in accordance with the rules of the plan, become exercisable on the Termination Date for a six-month period, and may be exercised to the extent of accrued savings as at the date of exercise.
Maurice will comply with the Company’s post-cessation shareholding requirements for 2020 for a two-year period from the Termination Date.
Maurice will be entitled to a capped contribution of up to £10,000 (excluding VAT) towards legal fees incurred in connection with his departure and a capped contribution of up to £5,000 (excluding VAT) towards tax assistance in the UK and Canada.
Other than the amounts disclosed above, Maurice will not be eligible for any remuneration payments or payments for loss of office.
In accordance with section 430(2B) of the Companies Act 2006, the information contained in this document will be made available on the Company’s website until its next Directors’ Remuneration Report is made available.
Amanda Blanc – Remuneration arrangements
Amanda will receive a basic annual salary of £1,000,000. She will be eligible to participate in Aviva’s annual bonus scheme for 2020 and her maximum bonus opportunity will be 200% of salary, which will be pro rated to reflect her time in role as CEO during 2020. She will be required to defer two-thirds of any award made into Aviva shares which will vest in three equal tranches over three years. However, in accordance with the statement released by the Company on 16 April 2020, bonus will not be considered for Amanda for 2020 until dividend payments are restarted for ordinary shareholders.
Amanda will also be eligible to receive the grant of an award for 2020 under Aviva’s LTIP under which awards are made annually at the discretion of the Remuneration Committee. LTIP awards for the Group Chief Executive are typically 300% of basic salary, with awards vesting after three years and only if specific financial and shareholder return targets are met. Reflecting that Amanda is taking up the role part-way through the year, her 2020 LTIP award will be 147% of basic salary (equivalent to a full-year award of 300% of basic salary). There is a further two-year holding period that applies after vesting.
Amanda will be required to build a shareholding in Aviva to the value of 300% of her basic salary. She will be required to retain 50% of the net share releases from her deferred bonus and LTIP awards until this requirement is met.
Amanda will receive a pension allowance of 14% of salary (which will be paid as a cash allowance) in line with the pension allowance received by her predecessor and with the maximum employer contribution level available to all UK based employees. This follows the latest guidance from the Investment Association. In addition, Amanda will receive the standard Aviva executive benefits package, including an initial period of accommodation assistance.
The relevant remuneration details relating to Maurice and Amanda will be included in the Directors’ Remuneration Report in the Annual Report and Accounts for the year ended 31 December 2020.
At the date of this announcement, Amanda has a beneficial interest in 27,339 ordinary shares in Aviva.
There are no further disclosures required under LR 9.6.13 in connection with Amanda’s appointment as Group Chief Executive Officer.
Notes to editors
· Amanda’s appointment as Group Chief Executive Officer has been approved by the PRA and FCA.
· For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
· Aviva is a leading international savings, retirement and insurance business. We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.
· Our vision is to earn our customers’ trust as the best place to save for the future, navigate retirement and insure what matters most to them. In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers.
· We operate through five business divisions: Investments, Savings & Retirement; UK Life; General Insurance; Europe Life; and Asia Life; and focus on three strategic priorities: deliver great customer outcomes, excel at the fundamentals and invest in sustainable growth.
· Total group assets under management at Aviva group are £510 billion and our Solvency II capital surplus is £12.6 billion (FY19). Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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