RBS braced for pay backlash as shareholders are advised to rebel

Ross McEwan

Pirc said elements of the award are ‘inappropriate’, as it pointed out that Mr McEwan was paid 46 times more than the average employee at the still 62.4 per cent-taxpayer-owned bank.

The proxy advisory firm also took issue with Mr McEwan’s total variable pay – at 211.1pc of salary – as it is over the recommended limit of 200pc.

The New Zealander’s pay packet last year was a £1m basic salary, a £1m fixed share allowance and a £1.1m long-term incentive award.

While other investor advisory groups Glass Lewis and ISS are recommending shareholders back RBS’s remuneration report, pay awards are expected to come under close scrutiny over the coming months, and as well as RBS, Pirc has advised shareholders in Taylor Wimpey, the FTSE 100 housebuilder, and Credit Suisse to oppose remuneration reports at their annual meetings, also to be held next week.

Taylor Wimpey boss Peter Redfern, 48, received a total of £3.15 million last year and can win a bonus worth 239.1 per cent of his annual pay.

The call from Pirc comes after HSBC bowed to investor pressure before its annual meeting last week and cut the size of payments given in lieu of pensions to its top executives.

The adviser also called on Credit Suisse shareholders to discharge the board and senior management after the bank came under investigation. Three of its former investment bankers in the UK allegedly used at least $200 million of government funds in Mozambique for alleged bribes and kickbacks. The bank denies any wrongdoing.