9th Mar 2015 17:44
LONDON (Alliance News) - Barclays PLC confirmed Monday that the chairman of its remuneration committee will step down from the role and the bank's board at its April annual general meeting.
The announcement came as part of a strong rebuttal issued by Barclays after the Local Authority Pension Fund Forum, an association of public sector pension funds based in the UK, said the remuneration committee chairman should step down.
John Sunderland, a non-executive director at Barclays since 2005, is chairman of its remuneration committee, which is responsible for approving pay for executives. He was in that role in 2014, when the bank's pay and bonuses to investment bankers riled shareholders disappointed with returns from the division and the group.
In the weeks leading up to last year's annual general meeting, Barclays appointed Crawford Gillies as a non-executive director. Gillies, also a non-executive director at Standard Life PLC and Mitie Group PLC, joined Barclays' remuneration committee last May, with the bank setting out a plan of having him replace Sunderland as chairman of the remuneration committee "at a date to be agreed, consistent with ensuring a smooth transition".
In a statement Monday, Barclays said it had made clear in April 2014 that Gillies would be joining the board remuneration committee from the start of May that year, and would succeed Sunderland at a later date.
"This was our only statement on the matter. In keeping with best governance practice, and having now observed and participated in a full remuneration cycle as a committee member, Mr Gillies will take on the remuneration committee chairmanship at the end of Barclays' annual general meeting on Thursday 23rd April 2015," Barclays said in a statement.
A Barclays spokesperson confirmed that Sunderland will step down from the board as well as the remuneration committee chairmanship.
Earlier Monday, the Local Authority Pension Fund Forum, which aims to wield influence on behalf of 64 UK pension funds, had said Sunderland has outstayed his welcome at the bank. "Remarkably...Sir John is still chair of the Barclays remuneration committee 11 months later. Sir John therefore presided over another full year of remuneration decisions," it said.
Kieran Quinn, the chairman of the Local Authority Pension Fund Forum, had alleged that Barclays had "gone back on its promise" that Sunderland would step down.
Barclays shares closed down 0.9% at 262.70 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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