Direct Line Group faced a significant shareholder revolt due to its chief executive receiving a substantial payout ahead of Aviva’s planned £3.7 billion takeover. According to City AM, Adam Winslow’s annual pay package exceeded £7.8 million, as reported in March.
The insurance giant’s annual report revealed that the chief executive’s compensation included a £5.8 million payment to offset earnings lost after joining the company in March 2024, as reported by City AM.
Winslow previously served as Aviva’s General Insurance CEO, which will become the parent company of Direct Line Group following the agreed acquisition in late 2024.
During the annual general meeting (AGM), 36.5% of the votes opposed the directors’ remuneration report.
The AGM took place after the UK’s Competition and Markets Authority (CMA) initiated an investigation into Aviva’s proposed £3.7 billion purchase of Direct Line. The CMA aims to assess if the deal will lead to a “realistic prospect of a substantial lessening of competition” through its phase one inquiry.
Until the end of May, the CMA welcomes comments on the acquisition and is set to make a decision by July 10. Alongside Direct Line, the group owns Churchill, Green Flag, and Privilege.
Direct Line to ‘engage’ with shareholders
Direct Line Group recently reported a decrease in its pre-tax profit for 2024, dropping from £277.4m to £218.4m, while net insurance revenue climbed from £2.4bn to £2.8bn.
In their communication to the London Stock Exchange, Direct Line stated: “The board appreciates the support shown by shareholders for the resolutions at today’s AGM.
“We acknowledge the outcome of the vote on resolution two relating to the directors remuneration report.
“While we welcome the backing of the majority of our shareholders for that resolution following engagement on remuneration, we will continue to engage with shareholders in constructive and open dialogue for so long as we remain an independent listed company.
“The company will provide an update to shareholders within six months of today’s meeting to the extent that the acquisition by Aviva plc has not occurred by then.”
