Pirc Tells Barclays Shareholders to Vote Against Pay Report -- Financial News
May 04 2022 - 5:09AM
Dow Jones News
By David Ricketts
Of Financial News
Barclays PLC investors have been urged by a major adviser to
oppose the bank's remuneration policy, raising the prospect of a
shareholder rebellion over executive pay at the U.K. lender.
Pirc, which advises large shareholders, has recommended voting
against Barclays' remuneration report at its annual general meeting
on Wednesday, citing concerns over the pay of its highest paid
director last year--group finance director Tushar Morzaria.
Mr. Morzaria was paid 5.2 million pounds ($6.5 million) in 2021,
61 times the average employee, a ratio that Pirc said was
"unacceptable." The adviser said it considers 20:1 an adequate
ratio.
The salary for Mr. Morzaria, who stepped down as finance
director in April, "is in the upper quartile of the competitor
group, which raises concerns for potential excessiveness."
Changes in pay for the highest-paid director over the past five
years "are not considered in line with the change in [total
shareholder return] over the same period," Pirc said.
Pirc is the second shareholder advisory firm to raise concerns
about executive pay at Barclays.
Fellow proxy adviser Glass Lewis also recommended shareholders
oppose the bank's remuneration report, citing high fixed pay for
its chief executive--Mr. C S Venkatakrishnan, who is known as
Venkat.
Venkat, who was appointed Barclays CEO following the departure
of Jes Staley in November 2021, is entitled to fixed pay of GBP2.7
million--12.5% more than his predecessor.
"Glass Lewis views high fixed-pay raises with scepticism, as
such remuneration is not directly linked to performance and may
serve as a crutch when performance has fallen below expectations,"
the proxy adviser told shareholders, adding that such increases
should be "phased over a number of years."
Institutional Shareholder Services, another proxy adviser, has
recommended shareholders approve the remuneration report, but also
raised concerns about the high level of fixed pay for Venkat.
When approached for comment, a spokesperson for Barclays pointed
to the bank's annual report and comments made by the chairman of
its remuneration committee, Brian Gilvary.
In the report, Mr. Gilvary noted the increase in pay for Venkat,
saying it "was a reduction from that for his previous role" as head
of global markets and co-president of the Barclays group.
Website: www.fnlondon.com
(END) Dow Jones Newswires
May 04, 2022 04:54 ET (08:54 GMT)
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