Standard Chartered wants to pay its CEO 474,000 pounds in pension allowance, in addition to a fixed salary in cash as well as shares worth 2.4 million pounds.
On Wednesday, in a development that marks the latest revolt over bosses pension payouts in top British firms, Standard Chartered is likely to face a rebellion from shareholders over its pay package for senior executives.
ISS and Glass Lewis, investor advisory firms, have advised shareholders to vote against increases in Chief Executive Bill Winters’s pension payouts, as part of a wider campaign against so-called stealth pay increases that see executives’ pensions boosted more than ordinary workers.
Shareholders are to vote on StanChart’s 2019 pay policy at its AGM in London.
In 2019, Standard Chartered is planning to pay Winters $618,522.60 (474,000 pounds) in pension allowance, up from 460,000 pounds a year earlier, on top of a fixed salary in cash and shares of 2.4 million pounds.
Glass Lewis has advised voting against the pay package plans since Standard Chartered has failed to cap pension contributions as a percentage of base salary, instead calculating against a bigger total salary base, and that payouts to executives are in any case at risk of being excessive.
Last week, at Barclays’ AGM, nearly 30% of shareholders voted against its executive pay plans; other firms including Ocado Group and Hammerson Plc have also seen similar revolts by shareholders.