Standard Chartered PLC (LON:STAN) faces a potential shareholder revolt over its executive pay plan for 2019 at the lender’s upcoming annual meeting in London.
Investor advisory firms Glass Lewis and ISS have told StanChart shareholders to vote against an increase in pension payouts for chief executive Bill Winters.
StanChart has proposed a pension allowance of £474,000 for Winters, up from £460,000 last year, on top of a fixed salary of £2.4mln in cash and shares.
Glass Lewis argued that StanChart has failed to cap pension contributions as a percentage of base salary, putting it at risk of being excessive. The lender has instead calculated the contributions against a larger total base salary, it pointed out.
The news marks the latest in a series of potential shareholder rebellions over pay increases that see executives’ pensions raised more than ordinary workers.
Last week more than 30% of investors voted against Barclays PLC’s (LON:BARC) executive pay policy at its annual shareholder meeting.
READ: Activist investor Edward Bramson suffers defeat in bid for board seat at Barclays
Ocado PLC (LON:OCDO) and Hammerson PLC (LON:HMSO) have seen similar revolts.