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Metro Bank risks backlash over £60m bonus scheme for chief executive

about 13 hours ago
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Metro Bank is at risk of a shareholder backlash after two influential shareholder advisers warned about a complex bonus scheme that could hand the bank’s chief executive a £60m windfall.ISS and Glass Lewis, prominent proxy advisory services that suggest how shareholders should vote on company policies at annual meetings, are concerned that the new long-term bonus will be linked to the bank’s share price, which may climb regardless of how well bosses run it.The reports, published before Metro Bank’s annual shareholder meeting on 20 May, suggest it could lead to excessive, and potentially unwarranted, windfalls for bosses, including the chief executive, Daniel Frumkin.Under the new plan, a bonus would be paid out after five years depending on how high the share price climbs over the long term.Metro Bank’s share price currently sits at about 110p, and would have to climb above 120p in three years’ time for the bonus to kick in.

A jump to 437p during that period could earn Frumkin a one-off payment of up to £60m,That would be a major windfall for a chief executive, who last year earned a total of £1,15m, thanks in part to a £153k bonus,Metro was the first high street bank to open in the UK in more than 100 years when it was launched by the US billionaire Vernon Hill in 2010, attracted a wave of customers with dog-friendly branches and seven-day opening hours,But the bank suffered in the years that followed.

Its share price was all but wiped out in 2019 after a devastating accounting error led to the resignation of it top executives and founder,It took a further dive in 2023 when it emerged the bank would need more cash from investors after it failed to convince regulators that Metro could be trusted to assess its own risks,Metro was forced into the hands of the Colombian billionaire Jaime Gilinski Bacal as part of a £925m rescue deal in 2023, leading to a massive turnaround plan that has involved more than 1,000 job cuts and a decision to close branches on Sundays,ISS said Metro Bank had “not put forward a convincing case” to support the new bonus plan, while Glass Lewis said it had “severe reservations about recommending shareholders support the remuneration policy at this time”,“Participants may be eligible for extremely high payouts based largely on market forces,” Glass Lewis said.

“We generally prefer that incentive awards reflect underlying performance measures that correlate to long-term growth, with appropriate limits.“We recommend that shareholders vote against this proposal,” Glass Lewis added.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionBoth proxy advisers recommended that shareholders reject a special resolution related to the new bonus scheme, as well as the wider remuneration policy.The remuneration policy, which is being overhauled outside the normal three-year cycle, also proposes a jump in annual bonuses that can now be worth up to 150% of salary, compared with 100% previously.The proposed change is likely to be voted through, given the bank is now 53% owned by Bacal, who also sits on its board.

However, it could still result in an embarrassing rebellion from remaining shareholders.Metro Bank said in a statement: “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.”Metro has also been called out for falling short on gender diversity, as women account for just 27% of its board.That is shy of the 33% target set for the FTSE 350 firms in line with the Hampton-Alexander review and 40% targets set by the FTSE Women Leaders review.

ISS said it had given “qualified support” for the Metro Bank chair, Robert Sharpe, as a result,Metro Bank pointed to a comment from its annual report stating: “We recognise the benefits of having a balanced and diverse board which represents the views, experiences and backgrounds of our customers and colleagues,We are committed to increasing the diversity of our board over time and in line with our board succession plan,”
foodSee all
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How to turn cheese ends into a comforting root vegetable pie – recipe | Waste not

Today’s comforting pie is super-adaptable and brilliant for using up any leftover bits of cheese. The classic homity pie filling of potatoes, onions and cream works beautifully with a jumble of cheese ends – cheddar, stilton, taleggio or whatever pungent blocks and rinds are lurking in your fridge drawer; it’s also a fantastic base for using up other root vegetables besides potatoes – celeriac, for example, bring earthiness, beetroot turns the entire filling a vibrant purple, while salsify adds a nutty note. Use whatever you have to hand, and waste nothing.This is a long-time family favourite. Mum used to make it for me as a kid and now I make it for my own children

3 days ago
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Pasta and pesto, broth and dumplings, pancakes and chutney: Ravinder Bhogal’s pea recipes

My earliest memory of kitchen duties is sitting on a stool in our courtyard in Kenya with a sack of peas that was bigger than me. I spent hours coaxing them from their pods, munching as I went; the result was a red plastic bucket brimming with peas like gleaming green marbles. As with asparagus, they have a short season, so grab them while you can: throw them whole into salads, broths and curries, or grind them down and use their starchy goodness to make pestos, pancakes and fritters.These herbal dumplings are made from the sturdiness of stale bread, cheese and sweet peas. I’ve used pecorino, but you could use parmesan or a hard goat’s cheese instead

3 days ago
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Zest is best: mandarins and navel oranges among Australia’s best-value fruit and veg for May

“We’re getting into a lot of citrus lines,” says Tony Polistina, co-owner of Forestway Fresh in Sydney’s Terrey Hills. “Australian navels started this week.”Navel oranges are about $5.50 a kilo for now, but Imperial mandarins from Queensland are about to hit their peak, already as low as $3 a kilo.That means it’s the perfect time to make Anna Jones’s mandarin compote – spread it on toast or use it in her delectable queen of puddings, which she makes every Mother’s Day

4 days ago
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Beyond boiling and steaming: alternative ways of cooking asparagus | Kitchen aide

What unexpected things can I make with asparagus? “The goal is to do as little as possible to it,” says Ben Lippett, author of How I Cook (published in September). “If you start dressing up asparagus with fancy cooking techniques, you lose its magic.” That’s not to say you should just boil the spears and be done with it, mind: “Try pairing them with relatively high-impact flavours, but nothing that will steal the show,” Lippett says. “Much as with a salad dressing, you want something with richness, fragrance, acidity and salinity.” Instead of a gribiche-style sauce, for example, sub in Kewpie (Japanese mayo), pickled ginger, chives, sesame seeds and frozen peas “to make a spoonable condiment”

4 days ago
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Georgina Hayden’s recipe for spring onion and spinach pakoras

One of my favourite ways of celebrating whatever vegetable is in season is by turning it into pakoras. Cooking them quickly allows the vegetable to sing, and a simple pakora batter is light enough to let spring onions and spinach do just that. With just enough gently spiced chickpea flour to bind the chopped veg, there is no claggy coating here. Serve as is with a squeeze of lemon and a pinch of sea salt, or with this addictive, punchy coriander and peanut chutney.Prep 15 min Cook 25 min Makes 12-161 bunch coriander, roughly chopped2 garlic cloves, peeled and roughly chopped30g peanuts, or almonds1 tsp caster sugarJuice of 1 lemon 2 green chillies, finely chopped (remove the pith and seeds if you want less heat)Sea salt and black pepper1 bunch spring onions, trimmed and cut into 1cm pieces1 large handful baby spinach, roughly chopped3cm piece ginger, peeled and finely grated½ tsp ground turmeric 1 tsp garam masala 160g gram flour 1 litre vegetable oil, for deep-fryingFirst make the chutney

4 days ago
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Rukmini Iyer’s quick and easy recipe for crispy chicken with zhoug and jersey royals | Quick and easy

You can’t go wrong with crisp, panko-fried chicken, and this version with zhoug is an absolute winner. You could describe zhoug as a green chilli sauce, but that wouldn’t quite do justice to this amazing Yemeni condiment, which is packed with flavour from preserved lemons, cardamom and garlic. Use some to stir through the hot, just-cooked jersey royals, then serve the rest as a sauce for the chicken. The only accompaniment you then need is a light green salad: a handful of whatever leaves are to hand, some finely sliced fennel and a few pumpkin seeds, all dressed with lemon juice, olive oil and sea salt.Prep 20 min Cook 16 min Serves 2350g jersey royals, cleaned and halved2 chicken breasts 4 heaped tbsp plain flour 2 tsp za’atar (optional)1½ tsp flaky sea salt 1 egg 75g panko breadcrumbs Olive oil, for fryingGreen salad, to serveFor the zhoug 50g coriander (if you dislike coriander, use an extra 50g parsley)15g flat-leaf parsley 1 preserved lemon, skin and flesh roughly sliced1 small garlic clove, peeled6 green cardamom pods, seeds only2 green chillies, pith and seeds removed if you prefer less heat½ tsp caster sugar ½ tsp ground cumin 50ml olive oilCook the potatoes in a large pan of boiling water for 10 minutes, until cooked through

5 days ago
sportSee all
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Brains before brawn in modern rugby | Letters

about 12 hours ago
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Raducanu moulds clay to her will in straight-sets victory over Teichmann

about 12 hours ago
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Competitive Itoje willing to learn from Mount Rushmore of Lions captains

about 12 hours ago
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Your Guardian Sport weekend: WSL finale, Lions stars on show and El Clásico

about 12 hours ago
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The IPL is a good barometer in India: its suspension shows us how serious this is

about 12 hours ago
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Horse racing: East India Dock flies home for Chester Cup glory, plus a Saturday preview

about 12 hours ago