Metro Bank is 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.
Sky News has learnt that Institutional Shareholder Services (ISS), the influential proxy adviser, 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”.
Money latest: Prospect of £2,000 water bills floated by industry regulator
“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.”
Trade war: Trump floats China tariff cut to 80% ahead of talks
Energy customers secure compensation for overcharging error
Money: £2,000 annual water bills coming, Ofwat warns
The maximum potential payouts are dependent upon Metro Bank’s stock hitting 437p – almost four times the level at which it is currently trading.
Less than two years ago, Metro Bank came close to collapse, with regulators overseeing a private bailout of the high street bank, which was established in the wake of the 2008 financial crisis.
This week, it released a trading update which showed that its financial and operating performance had improved markedly under Daniel Frumkin, its chief executive.
Be the first to get Breaking News
Install the Sky News app for free
Metro Bank said: “The remuneration committee’s approach is based on the delivery of long-term growth generation and the continued turnaround of the bank.
“The proposed policy is fully aligned with shareholder’s interests and the creation of shareholder value over a sustained period.”
A source close to the company said the maximum payouts would only be triggered if its performance hit key hurdles over a five-year period.
