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 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 2 David Cameron refers to 83-year-old Labour MP Dennis Skinner as 'Jurassic Park'
- 3 Alton Towers Air breaks down: 80 people stuck on broken down Monorail during heatwave
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
German ethics council calls for incest between siblings to be legalised by Government
Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...