Call for small shareholders to oversee pay of RBS bosses

Groups representing small shareholders say such a committee would ensure good corporate governance at the scandal-ridden lender.

The investors hope the inception of a shareholder oversight committee at still 73 per cent state-owned RBS would also serve as a test case that could influence other major companies to consider a similar move.

RBS, which was bailed-out by the UK taxpayer in 2008 at a cost of £45 billion to the public purse, said it had not seen full details but pledged to “look closely” at it once it had.

The UK Individual Shareholders’ Society (ShareSoc) and the UK Shareholders’ Association (UKSA), who represent retail (individual) investors, said: “We suggest that this initiative will significantly benefit corporate governance at RBS, and represents a valuable opportunity for RBS to lead the way in exploring a concept which works well in other countries.”

ShareSoc and UKSA will present RBS with a resolution for the proposal to be included on the agenda at the bank’s annual general meeting in May, where investors would then be given the chance to vote on the measure.

A spokesman for RBS, said: “We have not yet received the final draft resolution. Once it has been delivered we will look closely to ensure that it complies with all corporate governance and listing guidelines.”