Standard Life boss curbs his pay deal
Skeoch cuts own bonus but may still face backlash
However, his request – announced after the stock market closed – will only reduce his £3.5 million bonus by £700,000 which is equal to one year’s salary.
His £2.8m top-up payment represents 400% of salary as opposed to 500% he is entitled to receive.
Mr Skeoch will be keen to avoid a backlash over his pay, particularly as Standard Life Investments, which he still heads, has taken a firm stand against excess pay and bonus packages at firms in which it has a stake.
The timing of his voluntary bonus cut may itself be a subject of some debate at Tuesday’s shareholder meeting as it came 24 hours before the deadline for votes to be cast.
Mr Skeoch was promoted last summer and saw his basic pay rise by £250,000. He succeeded David Nish who is in receipt of his £835,000 salary until June – another cause for shareholder discontent along with a £700,000 share award to executive Colin Clark, who has been promoted to the board.
Tuesday’s AGM will be held in London under a new policy to alternate the meetings between London and Edinburgh.
Shareholders have rebelled against a number of pay packages for blue chip company executives, notably Bob Dudley, CEO of BP, who was awarded £14m in pay and bonuses.
An influential group of City and business leaders has condemned the current approach to executive pay in UK listed companies as “not fit for purpose”.
The Executive Remuneration Working Group published recommendations to end “remuneration creep”, where pay is driven up because no company wants to be seen to be below average.
Simon Walker, Director General of the Institute of Directors, said: “British boards are now in the last chance saloon,” He said that f the will of shareholders is ignored it will “only be a matter of time before the Government introduces tougher regulations on executive pay.”
- Royal Bank of Scotland has awarded 1,557,451 shares worth £3.36 million to 10 senior executives under rules to declare allocations to those persons discharging managerial responsibility (PDMR).The highest award is to chief executive Ross McEwan who receives 231,161 shares with a current value of £494,684. Mr McEwan will donate half of his 2016 fixed share allowance to charity.
Mr McEwan this week transferred 15,350 Shares to charity for nil consideration. The transfer is in line with the commitment Mr McEwan made in February 2015 not to benefit from his 2015 fixed share allowance. Following the transfer to charity, Mr McEwan has relinquished all legal and beneficial rights to the Shares.
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