British insurer Aviva said Monday that its chief executive has waived his latest pay raise following shareholder criticism.
Andrew Moss was due for a 4.8 percent increase in basic salary on April 1, taking the total from 960,000 pounds to 1,006,000 pounds ($1.56 million to $1.64 million).
Aviva announced the decision in a statement that acknowledged shareholder concerns that executive pay did not appropriately reflect changes in the value of the company's shares. Aviva shares were trading as high as 450 pence a year ago, but were down at 314.20 pence on Monday.
"Shareholders feel that Aviva has concentrated too much on operating profits rather than bottom line profits," said Barrie Cornes, analyst at Panmure Gordon & Co.
The company acknowledged that there were also concerns about compensation for newly recruited senior directors.
"At least the company is reacting and taking the issues on board rather than plowing on regardless," Cornes added.
The company said it is reviewing its policies in view of the concerns, and would continue to engage with shareholders.
"We take the views of our shareholders very seriously," said Scott Wheway, chairman of Aviva's remuneration committee. "I am disappointed that we haven't done that as well as we should have on this occasion."
Aviva holds its annual general meeting on Thursday.