ABI steps into Lloyds Bank remuneration saga
The powerful Association of British Insurers (ABI) has today stepped into the Lloyds Bank remuneration saga calling on shareholders to reject the £2.3 million offer placed before chief executive Sir Eric Daniels. Even though said Eric Daniels waived his right to the massive bonus, after the group reported a £6.3 billion loss for 2009, there is concern that the remuneration board even suggested the payment of such a massive bonus.
While many investors on the streets may be unaware of the ABI, this is perhaps one of the strongest and most influential investment groups in the city, effectively the mouthpiece of insurance companies who invest billions upon billions of pounds into the UK stock market. A call to arms from the ABI will be respected by insurance companies and many other investors and we could see a battle later this year when the Lloyds remuneration report is put before shareholders.
The ABI is no one hit wonder, no voice in the darkness and can and has influenced shareholder votes many times in the past and will do many times in the future. It would come as no surprise to see Lloyds Bank sitting around the negotiating table with the ABI to try and arrive at a situation which is agreeable to both parties and which would hopefully see the remuneration report waved through at the forthcoming AGM.
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