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Aviva trims CEO's potential bonus after pressure from shareholder group

LONDON, April 10 (Reuters) - British insurer Aviva said on Friday it had trimmed the potential long-term bonus payout open to Chief Executive Mark Wilson and Chief Financial Officer Tom Stoddard after pressure from a shareholder group.

The move is the latest example of investor disquiet over governance issues such as executive pay and comes ahead of the annual season for shareholder meetings, when a firm's bonus and other plans are voted on.

At the firm's annual general meeting on April 29, Wilson (Oslo: WILS.OL - news) had been due to be granted a potential Long Term Incentive Plan (LTIP) payout of up to 350 percent of his base pay in five years time, depending on performance over the next three years.

Stoddard, meanwhile, had been due to become eligible for a future LTIP payout of up to 250 percent of his base salary.

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The deals were detailed in the Directors' Remuneration Report (DRR) for the year to end-December and were within the firm's existing remuneration policy, approved by shareholders in 2014, the company said in a statement.

"The Board was disappointed to receive feedback this week from a shareholder voting agency which expressed concern over the proposed LTIP awards, despite the tangible progress made by the management team and the award being within the company's remuneration policy," Patricia Cross, Chairman of Aviva (Other OTC: AIVAF - news) 's Remuneration Committee, said.

As a result of the concerns expressed by the unnamed voting agency, the board proposed to cut Wilson's payout to a maximum of 300 percent of his basic salary and Stoddard's to 225 percent of his base, a move both men accepted, the company said.

Voting agencies such as U.S.-based Institutional Shareholder Services Inc and UK-based peer Pensions & Investment Research Consultants Ltd (PIRC) advise institutions on how to vote on corporate governance issues at company annual meetings. (Reporting by Simon Jessop, editing by David Evans)