8th Nov 2019 08:23
(Alliance News) - Standard Chartered PLC said Friday it has cut the pension allowance for Chief Executive Officer Bill Winters and Chief Financial Officer Andy Halford, following discussions with shareholders after the annual general meeting in May.
At the AGM, 37% of shareholders voted against the resolution to approve the Asia-focused bank's remuneration report, while all other resolutions were passed with 90% or higher votes in favour.
Following discussions with dissenting shareholders, the Committee has made several changes to the remuneration of certain executive directors.
This includes changing the contractual terms for Winters and Halford, reducing their pension allowance from 20% of salary from 10% of salary with effect from the start of 2020.
Winters's pension allowance will be reduced by 50% to GBP237,000 from GBP474,000, while Chief Halford's pension allowance will also be cut by 50% to GBP147,000 from GBP294,000.
This marks a reduction of 8% in fixed pay and will align their pension arrangement with UK employees. Both Winters and Halford have accepted the changes, the bank said.
StanChart said it will continue to pay executive directors' salaries as a mixture of cash and shares, of which the share-based component is released over five years.
"I would like to thank Bill and Andy for their willingness to agree to these changes and to thank our shareholders and their representatives for engaging constructively with the Remuneration Committee, and for the strong support that they share with the board for our executive directors. The changes we are making will align the current executive directors' pension allowances with other UK employees with effect from January 1, 2020," said Christine Hodgson, chair of StanChart's Remuneration Committee.
Shares in Standard Chartered - which is headquartered in London - were down 0.7% at 728.80 pence on Friday morning.
By Dayo Laniyan; [email protected]
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