A quarter of shareholders voted against the new bonus scheme under which James Crosbie, the chief executive, and Peter Burt, deputy chairman, both stand to make £10m in addition to their salaries if certain targets are hit.
Under the scheme, HBOS performance will be measured against eight competitors, including the Royal Bank of Scotland and CGNU. Money Telegraph quotes a leading investor as saying: 'We are uncomfortable that there are only eight companies in the comparator group. Obviously, it's easier for HBOS to outperform just a few competitors, rather than a bigger group.'
Having said this, to trigger the mega-bonuses now on offer, HBOS executives will need to make sure their company outperforms competitors by 20%.
HBOS Pay Plan For Bosses Not Popular
HBOS's leading shareholders have expressed reservations about proposals that could see executives walk off with around £50m in bonuses in the next three years.
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