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Expert Corporate Governance Service (ECGS)
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Standard Chartered - AGM 08 May 2019

Item 4: Approve the Remuneration Policy

While no concerns have been identified over the proposed changes to the remuneration policy, there are ongoing concerns over remuneration at the Company which have not been addressed. The remuneration structure is unsatisfactory.  Both the bonus and the LTI are heavily reliant on qualitative criteria.  Qualitative criteria determine 50% of the bonus and 33% of the LTI, which exceeds guidelines. The maximum bonus slightly exceeds guidelines, as does maximum potential incentive pay. Furthermore, the pension contribution of 40% of base salary exceeds ECGS guidelines’limit of 30% and benefits are consistently excessive. We recommend shareholders oppose.

Item 17: To reappoint KPMG LLP as auditor of the company

The auditor's tenure exceeds our tenure limit of 10 years. KPMG LLP and its predecessors have been the external auditors of the Company for over 25 years. A tender for audit services was last conducted in 2013, which resulted in the reappointment of KPMG LLP.  However, the Company has undertaken a tender process for the audit contract for the year ending December 2020 which resulted in the recommendation to appoint Ernst & Young starting that year. Although the auditor's tenure exceeds our guidelines, a new auditor will be appointed for 2020 and non-audit fees are in line with our guidelines, we recommend that shareholders approve this resolution. 

Underlying
Standard Chartered PLC

Standard Chartered is a holding company and an international banking group that serves people and companies across Asia, Africa and the Middle East. Co. comprises a network of more than 1,026 branches and outlets in 63 markets. Co.'s segments are: Corporate & Institutional Banking, which supports transaction banking, corporate finance, financial markets and borrowing needs; Private Banking, which provides a range of investment, credit and wealth planning solutions; Commercial Banking, which provides a range of international financial solutions; Retail Banking, which provides digital banking services. At Dec 31 2017, Co. had total assets of US$663.50 billion and deposits of US$30.94 billion.

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Proxinvest

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Expert Corporate Governance Service (ECGS)

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