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Standard Chartered Slashes CEO Pension After Shareholder Row

Standard Chartered Slashes CEO Pension After Shareholder Row

(Bloomberg) --

Standard Chartered Plc halved the pension money the bank hands to Chief Executive Officer Bill Winters after months of pressure from investors.

The Asia-focused lender cut the retirement allowance for Winters and Chief Financial Officer Andy Halford from 20% of their annual salary to 10%, according to a statement Friday, putting the figure in line with benefits offered to other employees.

More than a third of the London-based bank’s shareholders failed to support its pay policy at a vote in May. British firms are being pressed to make their pension policies more egalitarian, with the U.K. Corporate Governance Code recommending that awards for top employees stay close to those for rank-and-file staff.

Most of the bank’s investors “wish to see the concerns of other shareholders in relation to pension allowances resolved,” while supporting the overall pay package for executive directors, the bank said.

Winters’ pension allowance will fall 50% from 474,000 pounds ($607,336) a year to 237,000 pounds from the start of next year. Halford’s allowance will fall from 294,000 pounds to 147,000 pounds. The reduction will result in an 8% cut to the duo’s fixed pay.

Standard Chartered said it had consulted with investors representing about 60% of its shares. “At these meetings, we listened to the range of views and concerns,” the bank said.

The bank’s stock is down about 30% since Winters took over four years ago and began grappling with issues ranging from a bloated cost base to government probes. His efforts have helped the bank put the worst behind it, and its shares have rallied 20% in 2019.

The rebound didn’t prevent Winters from being the target of a campaign by Glass, Lewis & Co., a proxy adviser that researches corporate governance and advises institutional investors how to vote. As the battle became more acrimonious, Winters called the criticism of his pension arrangements “immature and unhelpful.”

Investors including Schroders Plc and Aberdeen Standard Investments, both among the bank’s 20 biggest shareholders, welcomed Standard Chartered’s announcement.

“We are pleased that the company has listened to shareholders, and are very supportive of this move,” said Daniel Veazey, head of corporate governance analysts at Schroders.

To contact the reporter on this story: Harry Wilson in London at hwilson57@bloomberg.net

To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Keith Campbell, Marion Dakers

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