Aviva chief executive Moss steps down

Andrew Moss has left his post as chief executive of Aviva with immediate effect.

The move follows heavy shareholder criticism of Moss at the company’s annual general meeting last week and their rejection of the directors’ pay package.

Aviva’s board has asked chairman designate John McFarlane to become interim executive deputy chairman with immediate effect and executive chairman from 1 July pending the appointment of a new chief executive.

He has been asked to maintain his executive role while the board assesses internal and external candidates for the chief executive role - a process it expects to take “a number of months”. After a new chief executive is found, McFarlane’s role will revert to non-executive chairman.

Current Aviva chairman Lord Sharman said in a statement that Moss had approached him with the decision to step down, deeming it in the best interest of the company. Moss has offered to assist in any way he can to ensure a smooth transition.

While Moss is leaving under a cloud, Sharman urged people to acknowledge the progress that has been made under Moss’s stewardship of Aviva. “Through the global financial crisis he led the consolidation of our international presence and the integration of 40 brands into the very powerful single Aviva brand,” Sharman said. “He reduced the cost base, improved operational performance and more recently began the implementation of the strategic focus, with the sale of RAC, the deconsolidation of Delta Lloyd and a number of overseas disposals.”

A statement from Aviva’s board said it appreciates the contribution Moss made in his role as chief executive and, before that, chief financial officer.

Having quit as chief executive, Moss will leave Aviva’s board “shortly” and a further announcement will be made to confirm the financial terms of his departure and date of leaving.

Moss has been unpopular with shareholders and equity analysts, who have criticised him for a lack of a clear strategy for Aviva. Some are expecting his departure to boost Aviva’s share price. “We expect his departure to be taken positively by the market, clearing the way for more aggressive restructuring of the group,” Jefferies analyst James Shuck said in a research note.

McFarlane has announced a new set of priorities for Aviva: focus, financial strength, performance and stakeholders.