Standard Chartered exec directors accept pay cuts following shareholder revolt

Maria Nikolova

After the resolution on the directors’ remuneration policy received the support of 64% of shareholders at the latest AGM, the company is introducing changes to pay terms.

The Remuneration Committee of Standard Chartered has earlier today published an update regarding changes to executive director remuneration.

At the annual general meeting (AGM) held on May 8, 2019, resolution 4 on the directors’ remuneration policy received the support of 64% of shareholders. The UK Corporate Governance Code requires companies to provide an update within six months of an AGM where more than 20% of shareholders have voted against a resolution. Hence, today’s statement by the Remuneration Committee provided an update on the recent shareholder engagement.

Since the AGM, the Chair and members of the Committee and the Group Chairman engaged with shareholders that represent approximately 60% of Standard Chartered’s issued share capital, with the Investment Association that represents over 250 UK investment management firms and with other major shareholder advisory bodies.

At these meetings, the key views expressed were:

  • The majority of shareholders support the existing overall quantum of total remuneration offered to the current executive directors in absolute terms and relative to peers. Notwithstanding this, they wish to see the concerns of other shareholders in relation to pension allowances resolved, whilst keeping the executive directors engaged and focused on the delivery of the strategy;
  • Where shareholders had concerns, these primarily related to the lack of alignment between pension arrangements for incumbent executive directors with the wider workforce;
  • Notwithstanding the executive directors’ contractual entitlements, a number of shareholders expect a reduction in pension for Standard Chartered’s current executive directors;
  • Some shareholders expressed concerns that, while disclosure levels are generally good, the structure of salary and pension arrangements and how they align to the wider workforce and the UK;
  • Corporate Governance Code was not as clearly explained as it could have been, leading to insufficient clarity.

The Committee concluded that Standard Chartered should implement a change to resolve concerns as swiftly as possible, with the Board, including the executive directors. The contractual terms and conditions for Bill Winters and Andy Halford will change and their pension allowance will reduce from 20% of salary to 10% of salary with effect from January 1, 2020. This aligns the executive directors’ pension arrangement with UK employees of Standard Chartered from the start of 2020.

The executive directors’ salaries are paid as a mixture of cash and shares to strengthen shareholder alignment and the pension allowance is set as a percentage of salary (both the cash and shares components). This is key to the alignment of the current executive directors’ remuneration to other UK employees. Pension allowances as a percentage of only part of salary would not be aligned to the wider workforce.

Changes to executive director remuneration include:

  • Bill Winters’ pension allowance will reduce by 50% from £474,000 to £237,000 on 1 January 2020. Andy Halford’s pension allowance will reduce by 50% from £294,000 to £147,000 on 1 January 2020.
  • Fixed pay (salary plus pension allowance) for the executive directors will reduce by 8%.
  • Because the variable pay opportunity is a maximum of 200% of fixed pay in line with the regulatory definition, the reduction in pension allowance will result in a reduction in the variable pay opportunity for both executive directors.
  • As a result of the changes, the target and maximum total remuneration opportunity (fixed pay plus the variable pay opportunity) for the executive directors will reduce by 8%.
  • No compensation is being given to the executive directors for the reduction in their pension allowance.

Both executive directors have accepted this change.

Read this next


Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”