mast image

Special Report

Impact investing


NBIM lauds 'challenge to conventional thinking' on RBS exec pay

Related Categories

The manager of Norway’s NOK8trn (€848bn) oil fund will back a revamped pay policy at the Royal Bank of Scotland (RBS) this week and has praised the bank’s break from traditional ideas about pay.

Norges Bank Investment Management (NBIM) said it would vote in favour of the pay policy for top staff at the UK bank’s annual general meeting (AGM) on Thursday. It said it would also support “all other resolutions” put to shareholders.

NBIM said the board of directors of Royal Bank of Scotland Group had proposed simplifying the executive compensation framework, in addition to reducing maximum award levels.

“We commend the board’s willingness to challenge conventional thinking on remuneration,” NBIM said in a statement. “The board’s proposal to change the remuneration structure to be simpler, with greater long-term alignment to shareholders and with executive directors having significant alignment in shares both during and after employment, is in broad harmony with [NBIM’s] published position paper on CEO remuneration.”

In its position paper published a month ago, NBIM said pay levels for chief executives should be driven by long-term value creation, and that a large part of company leaders’ total annual remuneration should be in the form of shares that were locked in, preferably for 10 years.

RBS will hold its AGM on Thursday at 2pm in Edinburgh.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2540

    Asset class: All/Large Cap Equities.
    Asset region: UK.
    Size: The fund will be added to our guided fund range.
    Closing date: 2019-05-27.

  • QN-2541

    Asset class: Small/Mid-Cap Equities.
    Asset region: Switzerland.
    Size: CHF 130m.
    Closing date: 2019-06-04.

Begin Your Search Here