NEWS RELEASE 23 March 2004
STUC ATTACKS FAT CAT PENSION POT OF INSURANCE BOSS
The STUC has criticised insurance group Aviva for awarding their Chief Executive, Richard Harvey pay and pension increases amounting to £2.2 million pounds at a time when many workers have lost their pensions entitlement, young workers cannot afford to save for retirement and many pensioners face a life of poverty or means tested benefits.
Ian Tasker, STUC Assistant Secretary said,
"Again we are seeing an example of big business awarding an executive ludicrous bonuses at a time when workers within his own organisation have seen their bonuses cut."
"It would appear that companies are filling their directors' pension pots to the brim before legislation comes forward to cap the amount fat cat bosses can pay into their schemes. In instances such as this it is the workers who earn the profits who are financially penalised to ensure that Chief Executives receive maximum benefit before new legislation takes force".
"At a time when pensioner poverty is of major concern and occupational pension schemes continue to be in crisis, confidence in neither state nor occupational pension provision will improve unless the Government commits to take action to stop companies following this course of action. This means placing a cap on executives' remuneration packages and directing rewards to those who contribute to company profitability".
ENDS
For further details:
Ian Tasker David Moxham