Aviva boss Andrew Moss to step down

Insurance firm Aviva has announced that chief executive Andrew Moss will be leaving with immediate effect.

The move comes after the firm suffered the embarrassment of losing a shareholder vote on executive pay at its annual meeting last week.

Mr Moss had already turned down an annual salary increase following concerns among shareholders about pay levels at the insurer.

Chairman designate John McFarlane will take on the role on an interim basis.

The board of the company said it had asked Mr McFarlane to stay in the role while it looked for a permanent replacement among internal and external candidates.

Mr McFarlane said he was excited to take on the role.

"My first priorities are to regain the respect of our shareholders by eliminating the discount in our share price and to find the very best leader to be our future chief executive," he added.

Aviva chairman Lord Sharman said Mr Moss had "reduced the cost base and improved operational performance" at the company.

"We should acknowledge the progress that has been achieved under [his] leadership," he said.

Last week, 54% of Aviva shareholders voted against the company's annual remuneration report.

They were angry about the amount the new UK chief executive, Trevor Matthews, was paid when he joined, as well as the falling company share price, which has slumped by more than a quarter in the past 12 months.

It is only the fourth time that a FTSE 100 company has lost a vote on a remuneration report.

However, shareholders voted overwhelmingly to re-elect Mr Moss as chief executive, with 95% in favour.

Earlier in the week, Mr Moss had agreed not to take a rise in his pay, which would have taken his £960,000 salary to above £1m.

Last month, 26.9% of Barclays shareholders voted against its remuneration report.