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Standard Chartered Cuts CEO, CFO Pension Allowance

Standard Chartered Plc (SCBFF.PK,STAC.L,STAN.L) has reduced pension allowance for its Chief Executive Officer and Chief Financial Officer, following a large shareholder vote against its remuneration policies.

Christine Hodgson, Chair of the Standard Chartered PLC Remuneration Committee, said, "....The changes we are making will align the current executive directors' pension allowances with other UK employees with effect from 1 January 2020. This will result in a material change to Bill and Andy's pension allowances as well as an 8% reduction in their total remuneration opportunity."

The Asia-focused lender cut the pension allowance for its Chief Executive Office Bill Winters and Chief Financial Officer Andy Halford to 10% of their annual salary from 20%, effective from 1 January 2020.

The bank said that it will continue to pay executive directors' salaries as a mixture of cash and shares. The share-based component is released over five years to strengthen shareholder alignment and focus on long-term value creation. It is not variable or performance-related pay.

The lender also said it will improve the disclosure in the 2019 directors' remuneration report on the structure of fixed pay, and how it aligns with the wider workforce and complies with the UK Corporate Governance Code.

Bill Winters' pension allowance will be reduced by 50% to 237,000 pounds (10% of salary) from 474,000 pounds (20% of salary).

Andy Halford's pension allowance will be reduced by 50% to 147,000 pounds from 294,000 pounds.

This is a reduction of 8% in fixed pay--salary plus pension allowance.

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