Emerging markets and Asia centric Standard Chartered has joined the growing list of global lenders facing shareholder mutiny on overly generous compensation packages.
Standard Chartered (SCB) is facing a potentially embarrassing investor revolt at its upcoming Annual General Meeting (AGM) on Wednesday May 3rd in London.
The spat, as reported by the U.K.'s «Daily Telegraph» surrounds a 7.1 million Pounds sterling share bonus scheme it is handing to the chief executive and finance chief for reviving the fortunes of the bank.
Bar Set Too Low
The influential investor advisory firm, Institutional Shareholder Services (ISS), has alerted SCB shareholders that it is concerned that the targets set for the top bosses in the bank’s long-term incentive plan (LTIP) are not demanding enough.
Bill Winters, the chief executive, stands to net share awards with a face value of as much as 4.4 million Pounds sterling from the scheme, while the chief financial officer, Andy Halford, could pocket up to 2.7 million Pounds sterling.
As finews.asia reported recently, in its first quarter interim management statement SCB, witnessed a near doubling of first quarter profits.
East v West
Last week in Zurich the Credit Suisse management just barely won approval for pay practices including a 3.09 billion Swiss franc bonus pot. Chairman Urs Rohner received a scathing review from shareholders at the Swiss bank's AGM.
While in Singapore humility was the name of the game as DBS chief Piyush Gupta trimmed senior executive pay by 13 percent last year to hold managers accountable for weaknesses.
Gupta informed shareholders at the lender’s AGM that remuneration for the bank’s senior management, including his own fell to $58.2 million Singapore dollars in 2016.
