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		</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.</p>
<p>The bank said it was a sector leader when it comes to &#8220;showing restraint&#8221; over executive pay, as it responded to two investor advisory groups which had urged shareholders to oppose the lender&#8217;s new pay policy on the grounds that cuts to salaries and bonuses had not gone far enough.</p>
<p>However, more than 96% of investors backed the new pay plan during a heated annual general meeting (AGM) in Edinburgh, which was punctuated by investor anger over branch closures, corporate governance and the ongoing scandals surrounding the taxpayer-backed bank.</p>
<p>Speaking at the AGM, Sir Sandy Crombie, chair of the remuneration committee, said RBS had drawn up a pay policy that was simpler and &#8220;significantly reduced&#8221; the maximum amount bosses could earn.</p>
<p>He said: <i>&#8220;RBS has, since the financial crisis, 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.&#8221;</i></p>
<p>Under the new pay plan, chief executive Ross McEwan would be eligible for a long-term award of 175% of his salary and finance chief Ewen Stevenson 200%.</p>
<p>While the awards are significantly lower than the previous 400%, proxy shareholder advisory group Institutional Shareholder Services (ISS) said prior to the meeting that the pay cuts were not &#8220;sufficient&#8221;.</p>
<p>The Pensions &#038; Investment Research Consultants (PIRC) also raised concerns about measures within the policy that would allow executives to secure pay awards even after they leave the bank.</p>
<p>Sir Sandy added: <i>&#8220;You may be aware of the press commentary following the publication of proxy advisor reports, in particular the recommendations against the new remuneration policy by ISS and PIRC.</p>
<p>&#8220;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.</p>
<p>&#8220;We subsequently re-engaged with a number of our major shareholders, and I am pleased to say that the vast majority indicated their continued support for our proposals.</p>
<p>&#8220;In addition, Norges Bank, one of our major shareholders, has recently issued a public statement confirming support for the new policy highlighting the simplified structure and reduced maximum award levels. They also commended the board&#8217;s &#8216;willingness to challenge conventional thinking on remuneration&#8217;.&#8221;</i></p>
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