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(Sharecast News) - Metro Bank is reportedly the latest London-listed company to face a backlash over its pay plans after drawing opposition to a proposal which could see top executives paid up to 60m apiece.
According to Sky News, proxy adviser Institutional Shareholder Services (ISS) has told the high street lender's investors to vote against its remuneration policy and a Shareholder Value Alignment Plan (SVAP) at its annual meeting on 20 May.
ISS said in a report to clients - seen by Sky News - that the share award plan had the "potential to deliver outsized rewards".
"Performance is measured solely based on total shareholder return over a baseline value (80p for the May 2025 grant)," it said. "The use of share price targets, in general, may not necessarily reflect management performance.
"Despite the remuneration committee's explanations, overall, the company has not put forward a convincing case to support the SVAP."
The maximum potential payouts are dependent upon Metro Bank's stock hitting 437p - almost four times the level at which it is currently trading.
A source close to Metro Bank told Sky that the maximum payouts would only be triggered if its performance hit key hurdles over a five-year period.
On Thursday, Metro Bank said in an update that it remained confident of meeting full-year guidance as it reported a "significant" increase in first-quarter underlying profit versus the second half of 2024.
The bank put the jump in profit down to structurally higher net interest margin, driven by continued asset rotation and deposit optimisation.
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