Insurers be impacted by Walker review
Admiral, RSA and bank-owned insurers may have to pay higher salaries to non-executive directors in the wake of the Walker review.
The review into corporate governance calls for non-executives to spend up to 50% more time on the job, which is likely to trigger greater salary demands.
The review also recommends greater disclosure into public pay, risk committees to have power to scrutinise and block big transactions, and remuneration committees to scrutinise pay levels.
Although the review is principally aimed at tightening corporate governance for banks, Admiral and RSA are named as “other financial institutions” to which the recommendations should apply.
Aviva is named in the review as a life insurer and HSBC, RBS and Lloyds TSB, which all have insurance arms, are classed as banks.
A review spokesman said the companies were named because they could pose a ‘systemic risk’ to the financial stability of the UK. The review is now under consultation.
An Admiral spokesman said: “It is primarily aimed at the banking sector, although there will be some implications for Admiral from a corporate governance point of view, but we don’t expect these to be significant for us. We don’t have an initial comment on the specific content of the report and will await the final report, which will be issued in November this year.”
RSA declined to comment.