Metro Bank investors urged to reject executive pay report
Summary
Investors in Metro Bank are being advised to vote against the bank’s pay report because of concerns over a complex bonus plan that rewards executives based on the bank’s share price, regardless of overall performance. The CEO’s pay has increased significantly, prompting criticism from a major shareholder adviser ahead of the bank’s annual meeting in June.Key Facts
- Institutional Shareholder Services (ISS), a major proxy adviser, recommended rejecting Metro Bank’s pay report.
- ISS criticizes a bonus plan called the “shareholder value alignment plan” (SVAP) that links executive bonuses directly to the bank’s share price.
- CEO Dan Frumkin’s pay could reach £60 million under this bonus scheme.
- Frumkin’s fixed salary will rise 11.3% to £1.05 million in 2026, following a roughly 20% increase in 2024.
- His total pay doubled to £2.6 million in 2025, the highest since the bank was founded in 2010.
- ISS also noted inadequate disclosure about how bonuses tied to non-financial targets like “people objectives” and risk management are measured.
- Despite these pay concerns, Metro Bank reported record revenue and its highest pre-tax profits in history last year.
- Metro Bank is undergoing a turnaround focused on corporate lending after a near collapse in 2023, backed by a £925 million rescue deal involving investor Jaime Gilinski Bacal, who owns 53% of the bank.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.