Aviva @ 312.4, +10.10p (+3.4%)
So Andrew Moss, CEO - Aviva, has resigned with immediate effect following the recent AGM in which more than 50% of shareholders voted against the company's executive remuneration strategy.
Key element is the criticism of Aviva's share price under Moss's stewardship which is down some 62% since Moss and the soon to be retiring Chairman, Lord Sharman took over.
The shares appear to have jumped in early reaction to the news although they have since come back a little from that early flourish which saw the shares hit 320p (+5.86%) at 8:34am.
Slightly concerned about transitions and strategy now as the company had recently re-structured and Moss was due to put forward his new strategy on the 24th May.
It also looks like the shareholders' aim was not to remove Moss immediately as his re-election vote was won (the re-election vote being a binding vote), but instead to raise the uncomfortable question of rewards v. performance particularly in the case of the golden hello for Trevor Mathews.
Not sure whether "the immediate effect" will have a short term impact (potentially rudderless) on the shares (once reality sets in) but what's done is done and the incoming Chairman is now standing in whilst the company looks for a new CEO and the company treads water in anticipation of a new strategy!
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Related articles:
- http://www.thisismoney.co.uk: Aviva boss Andrew Moss jumps overboard after huge shareholder mutiny
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