LONDON (Alliance News) - Life insurance and investment management group Standard Life PLC on Tuesday gave its backing to the UK remaining part of the European Union as it faced a minor shareholder rebellion over its remuneration report.
Standard Life Chairman Gerry Grimstone said the company believes that access to the EU single market is "in the best interests of our customers and clients."
"The Single Market has created an environment that gives individuals and businesses the confidence to invest for the long term and it would be potentially damaging to the UK economy and therefore to companies such as Standard Life if the UK were to leave it," he added, in remarks made to the group's annual general meeting.
Standard Life also said just over 22% of its shareholders voted against its remuneration report at its annual general meeting. Last week, Standard Life said CEO Keith Skeoch had voluntarily decided not to take the maximum awarded to him under the company's Executive Long-term Incentive Plan.
As a result of that decision, Skeoch's award under the plan was reduced to 400% of salary from 500%.
Grimstone, however, noted Skeoch's decision on his pay came too late to change the remuneration report for the year and many shareholders will have already voted on the issue.
"We believe in pay for performance and although, compared to his predecessor, the variable component was increased, his basic salary was decreased, deferral was lengthened, and shareholding requirements were tightened," Grimstone added, commenting on Skeoch's pay.
He add Standard Life continues to engage with its shareholders on the issue of executive remuneration.
The protest at Standard Life was relatively minor in comparison to what other UK-listed companies have faced. Weir Group PLC, the industrial valves and pumps maker, saw its remuneration report rejected, with 72% of shareholders voting against its pay plans.
BP PLC, the oil giant, saw 59% of shareholders reject its remuneration report, while rebellions were also faced by Irish pharmaceuticals company Shire PLC, medical devices maker Smith & Nephew and miner Anglo American PLC.
Standard Life also briefly said it has selected KPMG LLP to become its new auditor starting in 2017. The accountant will replace rival PricewaterhouseCoopers LLP, which will continue as Standard Life's auditor for 2016.
Standard Life shares closed up 0.3% at 320.1 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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