We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Aviva plc's (LON:AV.) CEO For Now

Key Insights

• Aviva to hold its Annual General Meeting on 30th of April
• CEO Amanda Blanc's total compensation includes salary of UK£1.11m
• Total compensation is 118% above industry average
• Aviva's total shareholder return over the past three years was 58% while its EPS grew by 41% over the past three years

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Under the guidance of CEO Amanda Blanc, Aviva plc (LON:AV.) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Aviva

Comparing Aviva plc's CEO Compensation With The Industry

Our data indicates that Aviva plc has a market capitalization of UK£14b, and total annual CEO compensation was reported as UK£7.2m for the year to December 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£1.1m.

In comparison with other companies in the British Insurance industry with market capitalizations over UK£6.0b, the reported median total CEO compensation was UK£3.3m. This suggests that Amanda Blanc is paid more than the median for the industry. What's more, Amanda Blanc holds UK£11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Aviva allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Aviva plc's Growth Numbers

Aviva plc's earnings per share (EPS) grew 41% per year over the last three years. Its revenue is up 5.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Aviva plc Been A Good Investment?

Most shareholders would probably be pleased with Aviva plc for providing a total return of 58% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Aviva that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.