The Association of British Insurers (ABI) has concerns about remuneration practices at the part-nationalised Lloyds Banking Group.
As the representative body of some of the bank’s leading shareholders, the ABI has issued an “amber alert” on a remuneration report that will be voted upon by shareholders at the group’s annual general meeting on 6th May.
News of the ABI’s stance comes just days after Barclays’ shareholders were advised to vote against the remuneration report at its annual general meeting, to be held at the end of this month.
The recommendation came from PIRC, a leading research and advisory consultancy that provides services to institutional investors on corporate governance and corporate social responsibility.
During last year’s official enquiries into the financial crisis, MPs criticised institutional shareholders for not having been more influential with banks’ boards in the months before the banking crisis erupted.