RBS defends pay award to CEO of 175% of his salary as ‘showing restraint’

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"2">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>The Royal Bank of Scotland has defended the way its top bosses are awarded after some shareholders criticised the lender for not making deeper cuts to pay&period;<&sol;p>&NewLine;<p>The bank said it was a sector leader when it comes to &&num;8220&semi;showing restraint&&num;8221&semi; over executive pay&comma; as it responded to two investor advisory groups which had urged shareholders to oppose the lender&&num;8217&semi;s new pay policy on the grounds that cuts to salaries and bonuses had not gone far enough&period;<&sol;p>&NewLine;<p>However&comma; more than 96&percnt; of investors backed the new pay plan during a heated annual general meeting &lpar;AGM&rpar; in Edinburgh&comma; which was punctuated by investor anger over branch closures&comma; corporate governance and the ongoing scandals surrounding the taxpayer-backed bank&period;<&sol;p>&NewLine;<p>Speaking at the AGM&comma; Sir Sandy Crombie&comma; chair of the remuneration committee&comma; said RBS had drawn up a pay policy that was simpler and &&num;8220&semi;significantly reduced&&num;8221&semi; the maximum amount bosses could earn&period;<&sol;p>&NewLine;<p>He said&colon; <i>&&num;8220&semi;RBS has&comma; since the financial crisis&comma; been a market leader in showing restraint in executive pay and in seeking to move away from the unintended consequences of highly geared financial incentives&period;&&num;8221&semi;<&sol;i><&sol;p>&NewLine;<p>Under the new pay plan&comma; chief executive Ross McEwan would be eligible for a long-term award of 175&percnt; of his salary and finance chief Ewen Stevenson 200&percnt;&period;<&sol;p>&NewLine;<p>While the awards are significantly lower than the previous 400&percnt;&comma; proxy shareholder advisory group Institutional Shareholder Services &lpar;ISS&rpar; said prior to the meeting that the pay cuts were not &&num;8220&semi;sufficient&&num;8221&semi;&period;<&sol;p>&NewLine;<p>The Pensions &&num;038&semi; Investment Research Consultants &lpar;PIRC&rpar; also raised concerns about measures within the policy that would allow executives to secure pay awards even after they leave the bank&period;<&sol;p>&NewLine;<p>Sir Sandy added&colon; <i>&&num;8220&semi;You may be aware of the press commentary following the publication of proxy advisor reports&comma; in particular the recommendations against the new remuneration policy by ISS and PIRC&period;<&sol;p>&NewLine;<p>&&num;8220&semi;We disagree with the conclusions reached in these reports and strongly challenged the view from ISS that the level of discount was insufficient under the new construct&period;<&sol;p>&NewLine;<p>&&num;8220&semi;We subsequently re-engaged with a number of our major shareholders&comma; and I am pleased to say that the vast majority indicated their continued support for our proposals&period;<&sol;p>&NewLine;<p>&&num;8220&semi;In addition&comma; Norges Bank&comma; one of our major shareholders&comma; has recently issued a public statement confirming support for the new policy highlighting the simplified structure and reduced maximum award levels&period; They also commended the board&&num;8217&semi;s &&num;8216&semi;willingness to challenge conventional thinking on remuneration&&num;8217&semi;&period;&&num;8221&semi;<&sol;i><&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68ed11f774eaa">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; &lpar; window&period;isWatlV1 &quest;&quest; false &rpar; &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&sol;&sol; Use Aditude scripts&period;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings &equals; window&period;tudeMappings &vert;&vert; &lbrack;&rsqb;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings&period;push&lpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;divId&colon; 'atatags-dynamic-belowpost-68ed11f774eaa'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;format&colon; 'belowpost'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; document&period;readyState &equals;&equals;&equals; 'loading' &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;document&period;addEventListener&lpar; 'DOMContentLoaded'&comma; window&period;getAdSnippetCallback &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; else &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback&lpar;&rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<&sol;script>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>


Discover more from London Glossy Post

Subscribe to get the latest posts sent to your email.

- Advertisement -
Exit mobile version