Standard Life chief ’s pay cut by one fifth
STANDARD Life’s chief executive has taken a 20pc pay cut, despite the insurer and asset manager putting in a better-than-expected performance in its annual results.
Keith Skeoch was paid £2.75m in 2016, down from £3.46m the year before, according to the FTSE 100 group’s annual report.
The report, released at the same time as annual results which showed pre-tax oper- ating profit of £723m, ahead of the £684m expected, revealed investor concern over executive pay at the business.
Standard Life has been an active campaigner against what is seen as excessive pay levels in the boardroom. Mr Skeoch last year took a voluntary cut to his total pay package, but the company still suffered an investor revolt at its annual general meeting in May, with 22pc of shareholders voting against pay plans. This year’s remu- neration report revealed “concerns” from investors over pay and “open, frank and constructive” discussions about how to shape pay structures to avoid future embarrassment.
Standard Life’s results showed that while profits rose 9pc, the company’s flagship investment fund had suffered from investors pulling their money out.
Although best known for life insurance, the blue-chip business is shifting its focus to asset management.
While overall assets under management rose 16pc to £357.1bn in the year to the end of December, Standard Life’s Global Asset Return Strategies (GARS) fund suffered a £4.3bn outflow. The fund has returned only 0.4pc over the past year, a fraction of the sector’s average, after positions it took went awry.
Standard Life will pay a final dividend of 13.35p, taking the full-year payout to 19.82p, up 8pc on last year.
Its shares fell 1.5pc to 369.4p yesterday.