Standard Chartered PLC Update from the Remuneration Committee (3328B)
September 30 2022 - 4:30AM
UK Regulatory
TIDMSTAN
RNS Number : 3328B
Standard Chartered PLC
30 September 2022
STANDARD CHARTERED PLC
UPDATE FROM THE REMUNERATION COMMITTEE
In accordance with Provision 4 of the UK Corporate Governance
Code, we are providing an update on our statement of 4 May 2022
regarding the AGM votes on Resolution 3, to approve the annual
report on directors' remuneration contained in the Directors'
Remuneration Report for the year ended 31 December 2021, and
Resolution 4, to approve the new directors' remuneration policy
contained in the Directors' Remuneration Report for the year ended
31 December 2021.
While both resolutions were passed, with majorities of 73.2% and
68.8% respectively, in recognition that there were a number of
votes opposing these resolutions, we announced on 4 May 2022 that
we would continue to engage with shareholders to understand their
concerns and committed to publish an update on that engagement
within six months of the AGM.
The Remuneration Committee Chair invited shareholders
representing approximately 70% of the Group's issued share capital
to re-engage and share their views on the outcome. A number of
these shareholders took up this invitation to meet with the
Committee Chair and other Committee members, and the Committee has
considered carefully the views shared at these meetings.
With respect to Resolution 3 on the annual report on
remuneration contained in the Directors' Remuneration Report, the
main concern related to our response to the fine imposed on the
Group by the Prudential Regulation Authority ("PRA") relating to
reporting and governance failings.
We acknowledge that our Remuneration Report could have provided
more information on the significant steps taken by the Committee in
reviewing this matter. In particular, we could have included
further detail on the Committee's decision making, the remuneration
actions that were taken, and the conclusion of the review following
the formal PRA findings, that no new issues, themes or individual
shortcomings had been identified that had not been considered at
the time of the initial review in 2019.
The detailed review of the issues at the end of 2019 when the
matter was first identified, and which was revisited in 2021 when
the fine was issued, resulted in remuneration actions being taken
at both the individual and collective level. Having reflected on
the views expressed by shareholders, and as discussed with them
during the engagement process, we are satisfied that the
remuneration adjustments made were appropriate.
With respect to Resolution 4, on the directors' remuneration
policy, the key issue for the opposing votes was the provision
which provides the Committee with the flexibility to disapply time
proration on the vesting of long-term incentive plan awards for
retiring executive directors.
We recognise that this provision is not standard practice in the
UK, and confirmed during shareholder engagement that application of
this provision will not be automatic. The minimum criteria included
in the policy are to provide a guide and gateway for Committee
determination of eligibility. However, the Committee would consider
carefully each case taking into account all of the circumstances at
that time.
If the Committee did decide to disapply pro-ration of
outstanding LTIP awards, the relevant directors' remuneration
report would include detailed disclosure of the rationale behind
the decision and of the resulting outcome. Shareholders would have
the opportunity to vote on the appropriateness of its use through
the AGM resolution on the relevant directors' remuneration
report.
A final update on these matters will be included in our next
directors' remuneration report. We would like to thank our
shareholders and their representative bodies for taking time to
engage with us further.
30 September 2022
For further information, please contact:
Shaun Gamble, Director, Group Media Relations +44 (0) 20 7885
5934
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDGZGFLRGZGZZG
(END) Dow Jones Newswires
September 30, 2022 04:30 ET (08:30 GMT)
Standard Chartered (LSE:STAN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Standard Chartered (LSE:STAN)
Historical Stock Chart
From Sep 2023 to Sep 2024