Standard Chartered share price: New CEO could receive £6.5 million in share awards

on Jun 15, 2015
Updated: Oct 21, 2019
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Standard Chartered Plc (LON:STAN) has promised to compensate its new chief executive officer Bill Winters for any losses that he may incur in quitting the hedge fund he was previously running, the Guardian has reported. According to the newspaper, Winters could get up to £6.5 million in shares as compensation.

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The exact size of the share awards will be determined once the new CEO has extricated himself from the Renshaw Bay, the hedge fund he established after leaving JP Morgan in 2009. If Winters incurs any losses, the stock will be given to him in three equal instalments over three years, starting in 2016. The Guardian noted that there were no performance related conditions and that Winters only had to remain in the employment of the bank to receive the shares.
The potential share award is detailed in Winters’ contract, which also reveals that he is on a salary of £1.15 million. He’ll also be receiving benefits of £35,000 together with an annual £1.15 million allowance of shares. Furthermore, Winters’ is entitled to participate in a long-term incentive plan, under which he would receive annual share awards worth double his salary. In addition, around £460,000 a year will be paid into a pension.
In today’s trading, Standard Chartered share price was down 0.7 percent at 1,057.00p, as of 08:37 BST. The stock has advanced 9.9 percent since the start of the year and the company’s market capitalisation currently stands at £26.3 billion.
As of Jun 12, 2015, the consensus forecast amongst 30 polled investment analysts covering Standard Chartered had it that investors should hold their position in the company. This consensus estimate has been maintained since May 08, 2013, when the sentiment of investment analysts deteriorated from “outperform”.
As of 11:00 BST, Monday, 15 June, Standard Chartered PLC share price is 1,042.25p.

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