RBS executives can expect a tough time this week at its AGM, with shareholders advised to vote against the reappointment of chairman Howard Davies and to oppose the company’s remuneration policy.
Shareholder advisers PIRC has said the reappointment of Davies should be opposed because of a lack of diversity on the bank’s board.
The Scotsman reports PIRC as saying that there is “no clear commitment to increase overall gender diversity at board level”.
There are also misgivings about pay at RBS, which remains 72% owned by the public. The issue centres on the bank’s proposal to remove its “pro rating” policy, meaning long-term incentive plans would pay out to executives who left the bank before the end of the scheme.
The moves comes at the same time as RBS proposes to substantially cut potential pay-outs under the LTIP, from around 400% of salary to between 175% and 200%.
The Scotsman says ISS, the proxy voting service, believes the cuts in potential pay-outs do not remove concern about changes in “pro rating” policy. It has advised voting against the new remuneration levels.
RBS’s annual general meeting takes place on Thursday 11th May.
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