Big investors fighting back against execs

Tim Wallace
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STANDARD Life Investments and F&C Investments both voted against the 2013 remuneration report, objecting to bigger bonuses at Barclays.

In a highly unusual move, Standard Life’s Alison Kennedy spoke out at the AGM, a strong signal of the institution’s anger at the bonuses.

“We are unconvinced that the amount of the 2013 bonus pool was in the best interests of shareholders, particularly when we consider how the bank’s profits are divided amongst employees, shareholders and ongoing investment in the business,” she said.

“We also believe that this decision has had negative repercussions on the bank’s reputation.”

F&C said the bonus hike is wrong “against the backdrop of a flat dividend, decline in adjusted profitability and returns on equity that did not cover the cost of equity.”

However, both backed the pay plans for the coming three years, and they support allowing the bank to pay bonuses of up to 200 per cent of salary.