Proxy advisory firm Institutional Shareholder Services has called on Lloyds Banking Group PLC's shareholders to vote against the British lender's 2017 remuneration report, following an 11% pay increase for CEO António Horta-Osório that took his total pay to £6.2 million, the Financial Times reported.
ISS estimated Horta-Osório's pay package to be about 95x more than an average Lloyds employee receives, according to the FT.
"There are concerns over the bonus framework in that it is considered to be unduly complex and there is lack of clarity in the company’s public disclosures on how bonus outcomes are actually determined," the advisory firm reportedly said. "Concerns have also been identified with the alignment of pay and relative performance."
A Lloyds spokesperson told the FT the bank was surprised with the recommendation as ISS had urged investors to vote in favor of the director's compensation policy during the 2017 annual general meeting, which implemented a similar framework.
Meanwhile, fellow proxy advisory firm Glass Lewis has backed pay at Lloyds, saying shareholder support was deserved despite an increase in fixed pay and concerns about targets related to bonuses, according to the report.
Lloyds will hold its 2018 annual general meeting May 24.
