Direct Line suffers shareholder revolt over CEO’s huge pay day
The group behind Direct Line has suffered a huge revolt by its shareholders over its chief executive being handed a huge pay day ahead of its planned £3.7bn takeover by Aviva.
In March, City PM reported that Adam Winslow took home a pay packet of more than £7.8m for the insurance giant’s latest financial year.
According to its annual report, the EO’s pay was significantly boosted by a £5.8m payment from Direct Line Group to compensate him for a loss of earnings after joining in March 2024.
Winslow had previously been the chief executive of Aviva’s General Insurance business, which is now set to become Direct Line Group’s owner after a deal was agreed at the end of 2024.
At the group’s annual general meeting (AGM), 36.5 per cent of the votes were cast against the directors’ remuneration report.
The AGM was held after the UK’s competition watchdog begun an investigation into insurance giant Aviva’s proposed £3.7bn acquisition of Direct Line.
The Competition and Markets Authority said it had commenced its phase one inquiry to establish whether the deal would result in a “realistic prospect of a substantial lessening of competition”.
The CMA has invited comment on the deal from interested parties until the end of May and has set a deadline of 10 July to make a decision.
As well as Direct Line, the group’s brands include Churchill, Green Flag and privilege.
Direct Line to ‘engage’ with shareholders
Last month, the group revealed its pre-tax profit for 2024 had fallen from £277.4m to £218.4m while its net insurance revenue rose from £2.4bn to £2.8bn.
In a statement issued to the London Stock Exchange, Direct Line said: “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.”