Standard Chartered given bloody nose as investors revolt over chief executive pension pay

Standard Chartered shareholders have given the bank a bloody nose over a ‘stealth increase’ to chief executive Bill Winters’ pension.

Investors holding more than 36 per cent of the UK-headquartered multinational bank’s shares voted against its directors’ pay report at its AGM today.

Read more: Standard Chartered unveils $1bn share buy back plan

Shareholder advisory firms ISS and Glass Lewis had urged investors to vote against a pension payout increase for Winters.

Earlier this year the Investment Association said it would target companies whose director pension contributions were not in line with the majority of employees.

The bank proposed to pay Winters a £474,000 pension allowance, up from £460,000 last year and on top of his fixed salary of £2.4m in cash and shares.

Speaking ahead of the result, Winters defended criticism of his pay.

He said: “I don’t know what the focus on pension allowances is when we have been totally transparent that the board decided not to impose a pay cut on me, not to violate the contract that they have with me.

“That’s it. I mean the rest is noise.”

Standard Chartered said it recognised there were a “significant number” of votes against the pay report and it would engage with shareholders over their concern before providing an update in the next six months.

Read more: Standard Chartered settles Iran sanctions probe for $1.1bn

At the end of last month the bank unveiled a $1bn (£768m) share buyback in a bid to win back trust from investors.

Just weeks earlier the bank was hit with a $1.1bn fine from the US and the UK over violations of sanctions against Iran.