Edinburgh-based savings and investment giant Standard Life said its chief executive Keith Skeoch voluntarily cut his potential incentive plan from 500% of his salary to 400%.
Skeoch’s base salary is £700,000, according to Standard Life’s annual report.
“Standard Life plc announces that Keith Skeoch, chief executive, has confirmed to the chairman of the remuneration committee that he has voluntarily decided not to accept the maximum opportunity awarded to him in 2016 under the Standard Life Executive Long-term Incentive Plan (Executive Plan),” said Standard Life in a statement.
“As a result, Keith’s award under the 2016 Executive Plan, which had been announced in the Annual Report and accounts 2015, has been reduced from 500% to 400% of salary.”
Standard Life will hold its annual general meeting at 200 Aldersgate, London, on May 17 — and not at the Edinburgh International Conference Centre.
This will be the first time in its history that Standard Life will stage its AGM outside of Scotland.
Standard Life now plans to alternate between London and Edinburgh for the AGM.
Standard Life’s annual report gives full details of Skeoch’s remuneration package.
The annual report said:
“Keith Skeoch was appointed chief executive on 5 August 2015.
“Given his promotion to a group-wide role, the Remuneration Committee considered it both appropriate and necessary to move Keith to a remuneration package commensurate with his group-wide responsibilities.
“The structure of pay and quantum is consistent with our move towards becoming a global investment business and when determining this structure we considered the remuneration arrangements for similar roles in asset management peer group companies as well as the more traditional insurers.
“Base salary of £700,000. Although this represents an increase of £200,000 from his previous base salary as Chief Executive, Standard Life Investments, it reflects his promotion and has been positioned at a level below the median position for companies of our market capitalisation and other FTSE 50 chief executives.
“It is also circa 16% lower than that paid to his predecessor.
“A pension opportunity of 27.5% of salary or an alternative cash allowance of 25% of salary, unchanged on promotion.
“A maximum short term bonus opportunity set at 175% of salary. This is a significant reduction on the maximum opportunity in his previous role of 365% of salary as we increased the importance of variable remuneration now delivered over the long term.
“A maximum opportunity under the Standard Life Executive Long-term Incentive Plan (Executive LTIP) of 500% of salary based solely on stretching group-wide performance measures and vesting over five years.
“The performance targets are measured over three years with awards vesting after five years.
“In his previous role as Chief Executive, Standard Life Investments, Keith had a long term maximum opportunity of 400% of salary of which half vested over three years (based solely on Standard Life Investments’ performance) and the remainder over five years.
“As a result of the changes highlighted above a higher proportion of the variable remuneration is based on the long term performance of the group and subject to malus and clawback over the long-term.
“It also aligns Keith’s remuneration to the longer term shareholder experience for an investment company such as ours.
“The 500% maximum award limit under the Executive LTIP was approved as part of our policy vote at the 2015 AGM.
“A shareholding requirement of 500% of salary (increased from 300% of salary).
“Keith Skeoch must maintain this value in the form of Standard Life plc shares during employment and for a period of one year following his departure from the group.”