Barclays shareholders should oppose the lender’s compensation plans as executives’ long-term bonuses remain 'high', Pensions & Investment Research Consultants Ltd. have said.
Bloomberg reports that shareholders should also vote against its annual report at its meeting on April 25 because the bank’s reliance on International Financial Reporting Standards may have meant it overstated profits by about $17.9bn, the London-based investment adviser said in a report this week.
The accounting rules restrict provisioning against expected loan losses, it said.
Antony Jenkins, 51, who replaced Robert Diamond as CEO in August, is seeking to rein in pay and boost profits to help restore investor confidence in the wake of the Libor scandal at the U.K.’s second-largest lender by assets. The London-based bank plans to eliminate some 3,700 jobs this year.
'IFRS profits may be unreliable, illusory and leaving out losses', PIRC said in the report.
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