Investors should vote against Royal Bank of Scotland's executive pay proposals at the annual meeting next month, the corporate governance advisers Pirc said yesterday, citing concerns over the former chief executive's controversial pension.
Pirc said the bank's decision to award the outgoing chief executive, Sir Fred Goodwin, a pension worth more than £700,000 as it accepted £20bn of government aid was "contrary to best practice". Pirc also queried an award of 10.4 million RBS shares to Sir Fred's successor, Stephen Hester. It said the award, designed to compensate Mr Hester for benefits he lost as a result of changing jobs, should be dependent on performance targets.
Pirc also challenged a £1.5m performance-based share award to the new chairman, Sir Philip Hampton, saying it tied him in too closely with the bank's executive management.