Pay row risk at Standard Chartered

Five pound notesAnother row over City pay was brewing after an investor body urged shareholders to vote down a report that delivered £56 million to 13 top bankers at Standard Chartered.

Pensions Investment Research Consultants (Pirc) said the Asia-focused bank's remuneration report was geared towards promoting short-term performance, according to the Sunday Telegraph.
It said the report, which saw its top 13 bankers awarded pay and bonuses for 2011 worth a combined total of 92 million US dollars (£56 million), does not disclose long-term bonus targets and it is difficult to understand.

The guidance comes days after nearly a third of Barclays shareholders failed to back its pay plans at a stormy annual meeting, with chief executive Bob Diamond's £17.7 million package coming under fire.

As a result, Barclays chairman Marcus Agius vowed the bank will liaise more with investors in the future and flag up any payments that could cause controversy.

Standard Chartered's remuneration report, which was released last month, revealed that the head of its investment banking arm, Mike Rees, received a package worth 13.4 million US dollars (£8.2 million).

Pirc said his bonus was more than nine times his salary, which was evidence of the short-term nature of the incentive plans.

It told shareholders to vote against the remuneration report at its annual meeting on May 9.

And it suggested a vote against the annual report itself, partly because chairman Sir John Peace sits on both the nomination and the remuneration committees, which it says is against corporate guidelines.
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