Press release 109 – RBS Executive Pensions row as Board fails again to listen to its shareholders
- RBS has again failed to engage effectively with its shareholders, this time over Executive Pensions. As a result, the company finds itself yet again in the headlines, for the wrong reasons.
- RBS Shareholders’ concerns about lack of effective engagement are vindicated by yet another escalating row.
- ShareSoc and UKSA have requisitioned a resolution at the April 25th AGM to establish a Shareholder Committee, with the intention of improving corporate governance and shareholder engagement.
- RBS will put this proposal to a vote at their Annual General Meeting (AGM) in May 2019, Resolution 28.
Why are ShareSoc and UKSA calling for a Shareholder Committee?
Mark Northway, ShareSoc Chairman said“Shareholders deserve a new approach; one with greater involvement and more effective input from them as ultimate owners. RBS, given its track record and consequent taxpayer support, should now be leading from the front in governance matters.”
Cliff Weight, Director of ShareSoc, who has coordinated the campaign said “Paying the CEO a pension of 35% of salary and the (female) Finance Director only 10% of salary is a nonsense. It shows the current method of engaging with shareholders doesn’t work. We think our Shareholder Committee proposal at RBS is a good starting point and an example for others to follow. Increased shareholder oversight through a Shareholder Committee can only make the shares more attractive to prospective investors.”
A similar resolution was submitted to the 2018 AGM. There were 604.99 million votes in support of the proposal, representing 5.5% of the public votes cast. UK Government Investments(UKGI), which represented 75.3% of the votes cast on this matter, chose to vote against the resolution on that occasion – effectively deciding the outcome.
ShareSoc and UKSA recognise that it takes time to influence the thinking of the Board, of UKGI and of institutional shareholders. Change does not happen overnight.