Greenbury 'breached guide' over Lloyds TSB bosses' pay
Tuesday 08 April 1997
Some shareholders who intend to go to the Lloyds TSB annual meeting on 15 April plan to ask why the company's board are allowed to set their own pay instead of leaving the issue in the hands of a remuneration committee.
Feelings have been running high since it was revealed chief executive Peter Ellwood had been awarded a 1996 bonus of pounds 679,000, bringing his total remuneration package to pounds 1.2m. While the Greenbury report suggested a remuneration committee should be the final arbiter of pay, at Lloyds TSB it is the board which takes a final decision after advice from a pay committee.
Last night Sir Richard insisted his Greenbury report offered only recommendations that should not be taken as hard and fast rules to be implemented whatever the situation.
He said: "What I wanted [with the Greenbury report] was to ensure there was an adequate level of discussion so that shareholders had transparency and could question those who set executive pay levels."
Sir Richard believed that the practice at Lloyds TSB worked well. He thought it unlikely there would be any complaints from large shareholders.
But this failed to pacify some of the company's smaller investors.
Michael Napier, one shareholder whose proxy will raise the issue next week said: "I think it is absolutely disgraceful. Sir Richard is a member of the board and yet he has not done anything to bring Lloyds TSB pay practices in line with his own report and stock market recommendations." The UK Shareholders Association also expressed concern.
But a spokeswoman for the bank said it was much more democratic for the full board of 16 non-executive directors to take the ultimate decision on pay.
- 1 Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
- 2 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 3 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Edgar Froese dead: Tangerine Dream founder dies aged 70
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...