Shareholder advisory group ShareSoc has urged members to vote against Royal Bank of Scotland Group’s (LON:RBS) remuneration report at the lender’s upcoming annual general meeting (AGM). The group is further opposing the re-election of the lender’s chairman Sir Howard Davies after the part government-owned bank refused to offer greater powers to retail investors.
RBS’ share price has been subdued in London in today’s session, having slipped 0.34 percent to 238.19p as of 14:19 BST, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.70 percent higher at 7,400.15 points. The group’s shares have gained more than 11 percent over the past year, and are up by some six percent in the year-to-date.
SocGen announced in a statement today that it recommended voting against RBS’ remuneration policy and remuneration report at the group’s AGM on May 11, pointing to the lender’s share ownership guideline of 400 percent of salary.
“This means that the CEO is able to sell all but £4million of his shares whenever he likes,” SocGen said, adding that the FTSE 100 group should require executive directors to hold their shares until two years after they leave.
The shareholder advisory group further recommended that its members vote against the re-election of RBS chairman Sir Howard Davies, with the bank resisting ShareSoc’s request for a shareholders’ resolution to be put to the AGM for the establishment of a shareholder committee.
“It is very disappointing that RBS are effectively taking the position that they will only make substantial improvements to their governance models and shareholder engagement processes if such improvements become mandatory,” Mark Northway, ShareSoc Chairman, commented in the statement. The Financial Times had previously quoted the FTSE 100 lender as saying that the shareholders’ proposed resolution was “inconsistent with the law and the company’s constitution”.