Standard Chartered PLC Statement on 2019 AGM Remuneration Policy Vote (7683S)
November 08 2019 - 02:17AM
UK Regulatory
TIDMSTAN
RNS Number : 7683S
Standard Chartered PLC
08 November 2019
Statement on 2019 AGM Remuneration Policy Vote
Standard Chartered PLC Remuneration Committee Shareholder
Consultation Update and Changes to Executive Director
Remuneration
London November 8, 2019. As a result of the level of votes at
the 2019 AGM opposing the directors' remuneration policy, Standard
Chartered PLC's Remuneration Committee announced on 8 May 2019 that
it would engage further with shareholders to listen to their views
on specific areas of the policy. The Committee also committed to
publish an update on that engagement in November.
The Chair and members of the Committee, and the Group Chairman
engaged with shareholders representing approximately 60% of the
Group's issued share capital, with the Investment Association that
represents over 250 UK investment management firms, and with other
major shareholder advisory bodies. There were a broad range of
views and, in reaching a conclusion, we have sought to find a
reasonable solution to reconcile these different opinions and
resolve concerns.
The full update statement from the Committee, including core
views expressed by shareholders, can be viewed here:
sc.com/en/media/press-release/standard-chartered-plc-remuneration-committee-update-statement-on-changes-to-executive-director-remuneration/
Changes to current executive directors' remuneration, effective
1 January, 2020:
To respond to the concerns of shareholders and the guidance on
pensions published by the Investment Association at the end of
September, the Committee has made the following decisions:
-- To change the contractual terms and conditions for Bill
Winters and Andy Halford and reduce their pension allowance from
20% of salary to 10% of salary with effect from 1 January 2020
-- To continue to pay executive directors' salaries as a mixture
of cash and shares. The share-based component is released over five
years to strengthen shareholder alignment and focus on long-term
value creation. It is not variable or performance-related pay
-- To improve the disclosure in the 2019 directors' remuneration
report on the structure of fixed pay, and how it aligns with the
wider workforce and complies with the UK Corporate Governance
Code.
Both executive directors have accepted this change.
Specific decisions in relation to executive directors'
remuneration:
-- Bill Winters' pension allowance will reduce by 50% from
GBP474,000 (20% of salary) to GBP237,000 (10% of salary)
-- Andy Halford's pension allowance will reduce by 50% from
GBP294,000 (20% of salary) to GBP147,000 (10% of salary)
-- This will align their pension arrangement with UK employees from 1 January 2020
-- This is a reduction of 8% in fixed pay (salary plus pension allowance)
-- The variable pay opportunity for both executive directors is
a maximum of 200% of fixed pay, in line with the regulatory
requirement and definition
-- The 8% reduction in fixed pay will therefore result in a
reduction of 8% to the variable pay and total remuneration
opportunity
-- No compensation is being given to the executive directors for
the reduction in their pension allowance.
Christine Hodgson, Chair of the Standard Chartered PLC
Remuneration Committee, said:
"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 1 January 2020. This will
result in a material change to Bill and Andy's pension allowances
as well as an 8% reduction in their total remuneration
opportunity."
For further information, please contact:
Jon Tracey, Head of Communications +44 (0) 20 7885 7613
Julie Gibson, Head of Media Relations +44 (0) 20 7885 2434
Mark Stride, Head of Investor Relations +44 (0) 20 7885 8596
-ends-
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END
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