Standard Chartered share price: Search for new chairman hindered by ‘modest salary’

Standard Chartered Plc’s (LON:STAN) search for new chairman has stalled, with the renumeration on offer apparently less than tempting amid tougher new regulations on bank executives.

The troubled FTSE 100 bank announced last March that its current chairman, John Peace, would leave the company this year. The news, which came along with the announcement of Bill Winters’ appointment as chief executive officer, triggered a search for Peace’s replacement, with Naguib Kheraj, the senior independent director, spearheading the effort. But the “modest salary’ on offer is hindering the search, The Sunday Times reported yesterday. The newspaper attributed the information to “City sources including the bank’s largest shareholders”.

Last year, Peace was paid £1.3million through a combination of salary and benefits. By comparison, John McFarlane, the chairman of larger rival of Barclays Plc (LON:BARC), is paid £800,000, The Sunday Times noted.
Top banking positions have seemingly lost some of their appeal in the face of new regulations aimed at making executives more accountable for scandals. As a result of the changes, for example, bankers can now face “clawback” on their remuneration if the bank is fined during their watch.
“There are very few people who would take on the risk of being the chairman of a bank these days. The role requires a lot of work,” one of the bank’s top 10 shareholders said, as quoted by The Sunday Times.
In today’s trading, Standard Chartered shares were down 0.8 percent at 484.80p, as of 10:26 GMT. The stock has fallen nearly 14 percent since the start of the year and the company’s market capitalisation currently stands at £15.9 billion.
As of January 23, 2016, the consensus forecast amongst 25 polled investment analysts covering Standard Chartered had it that investors should hold their position in the company. The same consensus estimate has been maintained since May 08, 2013, when the sentiment of investment analysts deteriorated from “outperform”.
As of 11:26 GMT, Monday, 25 January, Standard Chartered PLC share price is 481.25p.