The FSA is understood to have questioned why no downside scenarios appeared to be being considered by the executive, despite the economic ill-winds.
It is somewhat ironic, however, that by the turn of the year Moss had begun to agree, and was slowly working on plans to address the issues.
Mac Farlane is not known to be a fan of complicated long-term incentive plans, so it will be interesting to see what package he and the remuneration committee come up with.
Of course, that begs the question as to whether Mac Farlane will be able to hang on to Regan now that he appears to have lost out.
One source indicated that the board’s risk committee also flagged capital as a problem.
Six months on, and I have learnt that the vote was the final straw in a year-long debate between Moss and other members of the board, as well as the company’s regulator, the Financial Services Authority (FSA), about the direction of the company and its plans should the prevailing economic winds blow colder.It is clear, from talking to those who remain within the company, there was a difference of opinion between a number of directors – including Pat Regan, chief financial officer – and Moss over how urgent the issues were.When the vote came, however, and his unpopularity with investors became clear, the fact that there were tensions with some on the board and some at the regulator did not help. With Moss a distant memory, there is far more interest in who will take over at Aviva.Regan remains the favourite, but it is known that an external candidate also met members of the board as recently as 10 days ago.
Final interviews have taken place, pre-vetting by the FSA is understood to be complete, and an announcement on the victor could come as early as this month.
The name of former AIA boss Mark Wilson has entered the frame, and my sources indicate he is indeed likely to take the post.