Scottish Power says our energy meters are now too old - is this a ruse to force us to get a smart meter?
Are you a Wetherspoon lover or hater? LEE BOYCE and SIMON LAMBERT have very different opinions on the pub giant that's flying high...
Our mortgage valuation says the house we're buying is worth £40,000 less: What should we do and can we appeal?
CRANE ON THE CASE: Air Mauritius lost my luggage and ruined my holiday - what can I do to get some money back?
Spring property bounce is a damp squib: Estate agents says rising mortgage rates keep buyers at bay
I want to invest £600 a year for my new baby, what is the best way to do it - and how much could it grow to?
We need more than a British Isa to move the dial on UK smaller companies, says fund manager ABBY GLENNIE
Artificial grass can lead to increased flooding risk, major insurer warns - so should you ever get a plastic lawn?
BUSINESS LIVE: BoE expected to hold base rate at 5.25%; ITV eyes advertising market recovery; John Wood rejects £1.4bn takeover offer
Avon Protection handed £38m gas mask contract by MoD after reported deployment of chemical agents in Ukraine
Watches of Switzerland buys Italy's Roberto Coin for £104m in bid to expand in the lucrative luxury jewellery market
BAE Systems tools-up for growth as US ups support for Ukraine and Britain plots defence spending boost
Wood Group rejects £1.4bn Dubai takeover bid claiming it 'fundamentally undervalued' the company
ITV hit by Hollywood strikes as broadcaster pins hopes on Euros football for a revenue boost
Get 5.6% interest with this quirky 365-day notice savings account that beats the top one-year fixed rates
FCA's name and shame plan has the City running scared - that's why they SHOULDN'T ditch it: ALEX BRUMMER
Zoning out: Why London renters are swapping Clapham and Camden for Abbey Wood and Forest Gate
JLR offers £150 a month towards the cost of insuring new Range Rover models to encourage sales after theft concerns
Ford boss says it may restrict petrol models in the UK to hit EV sales targets and avoid crippling fines
Used car sales hit a five-year high as fresh supply of second-hand motors enter the market and prices drop
Scottish Widows gave me access to a stranger's £40,000 pension - so could they get at my six-figure pot?
Investors pull cash out of UK equity funds for the 35th consecutive month despite fresh FTSE 100 highs
Can YOU afford to become a stay-at-home mum? We reveal the income you really need
How do we stop our troubled child gambling away their inheritance? We can't just exclude one of our five children

Standard Life faces directors' pay battle

By This Is Money
Updated: 14:05 EDT, 14 May 2011

View
comments

Insurer Standard Life, which has a record for challenging fat cat pay, has been attacked over rewards for its own directors.

Gold standard: Firm has record for challenging fat cat pay

The powerful Association of British Insurers, whose members control £1.6tn of investments, has slapped an 'amber top' warning on Standard Life over changes to directors' pay ahead of its annual meeting on Tuesday.

The warning, part of a traffic light system, means it has concerns that best practice is not being followed.

It is the latest in a series of criticisms levelled at Standard Life's pay policies by shareholders and investor groups.

The criticism is hugely embarrassing as the insurer has played a key role in defining how companies should be run and its own corporate governance watchers are among the most respected in the industry.

Guy Jubb, head of governance and stewardship at Standard Life Investments, voted last year against HSBC's remuneration report for the third successive year and said salary increases at the bank were 'unacceptable'.

Hugh Savill, acting director for investments at the ABI, said: 'The ''amber top'' is to warn shareholders that there has been a lot of change in the remuneration schemes. We think shareholders should understand what has changed and the cumulative effect of these changes.'

A Standard Life spokesman said: 'These changes strengthen the link between business performance and directors' rewards.'

But proxy voting agency Pirc, which advises a number of public sector pension schemes, said it recommended Standard Life shareholders to vote against the remuneration report because it was not clear what profits targets the executives had to meet to earn their payouts.

Pirc said: 'We consider that combined bonus and share incentive awards made during the year were excessive. In particular, combined awards made to Keith Skeoch, head of investments, amounted to over 750% of his salary.'

A top 20 shareholder in Standard Life said: 'We won't be voting in favour of the pay report.'

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.