Corporate governnance experts Pensions & Investment Research Consultants (PIRC) have urged shareholders of Royal Bank of Sotland to vote against the remuneration report at the RBS annual meeting in Edinburgh on May 4.

“While the disclosure level is in line with best practice, there are important concerns over the excessiveness of the remuneration arrangements for executive directors … ” wrote PIRC in a report.

“There are also important concerns over the level of variable pay of the CEO which exceeds 200% of salary and which comes in addition to the Fixed Share Allowance (worth 100% of salary).

“The use of a Fixed Share Allowance to increase the overall pay of executive directors is not supported as it circumvents the spirit of the CRD IV regulations.

“In addition, it is noted that the CEO salary is above the upper quartile when compared with salaries of other CEOs in the comparator group.

“Finally, the ratio between the CEO pay and the average employee pay is considered excessive.”

PIRC also recommends rejection of other RBS resolutions including one that would “Authorise Issue of Equity with Pre-emptive Rights in Relation to the Issue of Equity Convertible Notes.”