Metro Bank today brushed aside a potential shareholder revolt over high pay for its boss and payments to the wife of its chairman as investors overwhelmingly backed the challengers leadership.
More than 96 per cent of the voting shareholders backed the re-election of chairman and founder Vernon Hill, while 93.5 per cent approved the remuneration report at its annual general meeting in its Holborn headquarters.
Shareholder advisory groups Pirc and Glass Lewis as well as prominent investor Royal London Asset Management all raised concerns this week over payments from Metro Bank to the architecture company, Interarch, owned by Vernon Hills wife, Shirley Hill.
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Metro Bank has paid £21m to InterArch since 2010, according to its financial statements.
Investor ire had also been directed at the remuneration for chief executive Craig Donaldson, which rose by 15 per cent, compared to an average pay rise of 5.75 per cent for employees on average.
Royal London said the banks pay policy and reasons for raising executive pay were too opaque.
In a statement following the meeting, Hill said: “We are grateful for the continued overwhelming support demonstrated today by our investors. Every resolution was passed by 93 per cent or more, proof our investors continue to support the strategic direction and robust governance framework of Metro Bank.”
Read more: Metro Bank chair facing shareholder revolt over payments to wifes company
Hill left his role at Commerce Bank, a New Jersey-headquartered bank he also founded, in 2007 after regulators investigated the relationship of Interarch to the firm.
Hill has previously told City A.M. that he “transplanted” the Commerce Bank business model to Metro Bank, as well as Republic Bank, another US retail lender he now controls.
The architectural design of the bank branches for both businesses is deliberately bold in order to attract attention on the high street and minimise marketing spending. Metro Bank is unusual among British banks for its relatively aggressive branch expansion plans, at a time when most incumbents are cutting back.
Read more: Metro Bank chairman faces revolt as investor queries wife payments
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