Schroders CEO faces shareholder rebellion over pay

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Schroders chief executive Peter Harrison faces a shareholder rebellion at the asset manager’s annual general meeting today over “inappropriate” pay.

Harrison was paid £6.3m in 2016, 33 times more than the average Schroders employee, the Financial Times reports.

Investor advisories Glass Lewis and Pirc have both urged investors to reject the “highly excessive” remuneration package, which is out of line with competitors.

Harrison’s pay is up to triple that of CEOs at some of the UK’s largest asset managers, with Henderson chief executive Andrew Formica taking home £2m, £2.8m paid to Aberdeen chief executive Martin Gilbert and £2.4m paid to Maarten Slendebroek, chief executive of Jupiter.

Glass Lewis also opposed a £3m severance payment for former head of distribution Massimo Tosato.

Last year, 96 per cent of Schroders’ shareholders supported the company’s remuneration report.

Harrison’s pay comes under scrutiny a month after Schroders revealed a 31 per cent mean gender pay gap at the firm, which it attributed to under-representation of women within senior levels of the business.