View more on these topics

Royal London eyes shareholder rebellion over Metro Bank chair payments

Royal London Asset Management has warned Metro Bank it will vote against the reappointment of its chairman over payments of more than £21m made to his wife’s company.

In the latest bout of activist shareholding from RLAM, it has expressed concerns over millions in payments for architectural, branding and marketing services to InterArch, a firm run by wife of Metro Bank chairman Vernon Hill.

The Independent reports that InterArch received £4.6m from Metro Bank in 2017 alone.

RLAM holds a £13.6m stake in the bank, and has put it on notice that it will oppose both Hill’s re-election and that of the bank’s audit committee at Metro Bank’s annual general meeting on 24 April.

Royal London’s head of responsible investment Ashley Hamilton Claxton says: “In a year when large corporate failures dominate the headlines, boardrooms should pay especially close attention to related party transactions, such as the payments by Metro Bank to InterArch, owned by the wife of the bank’s chairman, for design and branding services.

“We question whether Metro Bank’s audit committee has been sufficiently rigorous in its scrutiny of the payments made to InterArch.”

Metro Bank’s audit committee defended the InterArch contracts in its annual report as “at least as beneficial as those which could be obtained in the market from an alternative supplier”.

Last year, RLAM used its shareholder influence over advertising giant WPP to challenge executive pay at the firm.

Recommended

MM-AutumnBudgetBanner
2

Lifetime allowance 2018/19 increase confirmed but pensions absent

The Government has confirmed that the lifetime allowance 2018/19 will rise in line with inflation, but savers have been offered little else in the Autumn Budget. The lifetime allowance will increase from £1m to £1,030,000 to match CPI from 2018/19.  Though the maximum amount the can be saved each year into a Junior Isa or […]

2

Network Sandringham turns independent

The Sandringham network has announced will transition from restricted to independent advice. Speaking to Money Marketing this week, chief executive of the West Yorkshire-based firm, Tim Sargisson said increases in growth and profit during 2016 and 2017 had seen it expand the range of investment services it offers. He says: “We have moved our proposition […]

FSCS-Piggy-Bank-500x320.jpg
15

British Steel IFA hit with 30 FSCS claims in first fortnight

The FSCS has received more than 30 claims against collapsed advice firm Active Wealth just two-and-a-half weeks after opening the doors to compensation against the company. Active Wealth went into liquidation on 12 February after attracting attention for its role in advising members to transfer out of their final salary schemes at British Steel. The […]

Your top five queries about chargeable events

So far this year, members of Canada Life’s ican technical team have answered over 3,000 queries from advisers on a wide variety of subjects. One of the main topics of conversation has been chargeable events, and below are the top five most common queries. No. 1. Entitlement to personal allowances The growth in the value […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Looks like a sound approach by RLAM to me.

Leave a comment