Investment adviser Glass Lewis has joined Royal London in opposing the re-election of Metro Bank chairman Vernon Hill.
Metro Bank is in the midst of a shareholder rebellion following findings that £4.6m in fees for architectural, banking and marketing services were paid to architect InterArch, run by Hill’s wife, Shirley.
Royal London Asset Management holds a £13.6m stake in London-based Metro, which has paid a total of £21m to InterArch since its inception in 2010.
Glass Lewis says: “We view such relationships as potentially creating conflicts for directors, as they may be forced to weigh their own interests in relation to shareholder interests when making board decisions.”
RLAM head of responsible investment Ashley Hamilton Claxton says the board is to blame, and should be paying attention to related party transactions.
Metro Bank’s February results show net profits of £10.8m for 2017, compared with losses of £16.8m in 2016.