Standard Chartered share price: MPs question pay policy

on Jul 22, 2019
Updated: Mar 11, 2020

The head of the British parliament’s Work and Pensions Committee has written to the chair of Standard Chartered Plc’s (LON:STAN) remuneration committee questioning the bank’s executive pension pay levels, Reuters reports. The news comes ahead of the Asia-focused lender’s half-year results on August 1.

Standard Chartered’s share price has slipped into the red in today’s session, having given up 0.79 percent to 707.60p as of 08:40 BST, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and standing 0.16 percent higher at 7,520.66 points. The group’s shares have added more than four percent to their value over the past year, as compared with about a two-percent fall in the Footsie.

MPs question pay policy

Reuters reported this morning that in a letter written  on Thursday and made public today, the chair of  Work and Pensions Committee Frank Field asked why StanChart’s remuneration committee had put forward a proposal where the existing directors would receive 40 percent of base salary (or 20 percent of total salary) as the pension contribution whereas the contribution of new executive directors was limited to 10 percent of total salary.

The letter further questioned whether the remuneration committee supported the Investment Association’s guideline that pension contribution rates for executive directors should be aligned with that of their workforce and inquired if the remuneration committee planned to revisit the executive pay policy next year.

Analysts on StanChart

Barclays reaffirmed the Asia-focused lender as an ‘underweight’ last week, without specifying a target on the Standard Chartered share price, while Berenberg remains bullish on the company with a ‘buy’ rating. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 711.71p.

StanChart updated investors on its first-quarter performance in April, posting a rise in profits and cheering investors with a share buyback.

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