Unlock the editor’s summary for free
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
An influential power advisor has told direct investors to vote against the bonus awards for a value of 300 percent of the base salary, placing the salary practices of the insurer under a renewed scrutiny before their acquisition expected by Aviva.
Institutional shareholders said that investors should reject the awards of the long -term incentive plan, which could deliver to President Adam Winslow approximately £ 2.55 million and to the financial director Jane Poole £ 1.71 million. Executives must satisfy the performance conditions to receive the total amount of the awards.
The bonuses, which are the maximum level allowed under the company’s remuneration policy, were proposed for the first time last summer, after Direct Line had defended an offer to the acquisition of the Belgian Insurer AGEAS.
However, the payment packages of the directors were determined before Direct Line agreed a sale to AvivaAn agreement that now expects regulatory approval. The acquisition is expected to be completed in the middle of the year, companies said.
In its annual report last month, the Direct Line Board said the bonds would be granted as planned, and added that incentive packages “must function effectively in all scenarios.”
Shareholders will vote on the bonds at the company’s annual meeting on May 14.
Insufficiency He questioned whether the payment packages were still relevant after the successful offer of acquisition of Aviva, and pointed out that the consultation with the investors on the awards was interrupted by the Aviva approach. The previous 2021 bonus awards were lost due to low performance, he also pointed out.
Direct Line has said that one of the purposes of the bond is the retention of talent. Winslow, who joined the Aviva group, where he directed the General Insurance Unit of the United Kingdom and Ireland, is expected to resign to resign after the completion of the agreement, they said familiar people with the matter.
The acquisition of £ 3.7 billion direct lines marks one of the most important consolidation agreements in the United Kingdom insurance sector in recent years, as the industry responds to the growing cost pressures and regulatory scrutiny.
Everyone’s offer is expected to be agreed in December 2024 after months of speculation, more than a fifth of the United Kingdom’s car insurance market will give Aviva.
Last week, Agas announced a £ 1.3bn treatment Buy Esure rival of the private capital group Bain Capital.