Investors are criticizing Standard Chartered PLC over CEO Bill Winters' pension payment, which is the highest among chief executives of large U.K.-listed banks, the Financial Times reported.
Winters is set to receive a pension allowance of £474,000 after the bank changed the way it computed his pension. The figure is equivalent to 20% of Winters' total salary, which is the sum of his £1.2 million cash salary and share payment of the same amount. In 2018, Winters' pension allowance was equivalent to 40% of his basic cash salary, the FT noted.
The investor backlash comes amid mounting pressure for Britain's largest listed lenders to bring executives' pension payments in line with that of the majority of their staff, the report added.
One of the bank's biggest shareholders said the change goes against the Financial Reporting Council's guidelines, which state that only basic salary should be pensionable. Another shareholder told the newspaper that the bank would probably respond to the criticism by lowering the pension before shareholders vote on the matter at the annual general meeting in May.