UK Pension Group Accuses Barclays of “Misleading Shareholders” Over Executive Pay [UPDATE: Barclays Pay Chief Resigns]

UPDATE: On Tuesday, Barclays announced the resignation of Sir John Sunderland, chair of the bank’s pay review committee.

Barclays says the resignation was unrelated to pressure from the LAPFF, who publicly called for Sunderland’s resignation on Monday.

The bank has been criticized by the LAPFF and others over high bonuses and compensation.

Read the original Pension360 story, published on Monday, below.

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The UK’s Local Authority Pension Fund Forum (LAPFF), a group of 62 public sector pension funds, is taking Barclays to task for failing to replace the chairman of the bank’s pay review committee.

LAPFF, a group that has previously expressed outrage over bank’s “grossly excessive bonuses”, is now saying that the bank promised to replace the chairman of its pay review committee.

But 11 months after the promise, no change has been made.

More from BBC:

A leading pension body has called for the immediate resignation of Sir John Sunderland, chair of Barclays’ pay review committee.

It accuses the bank of “misleading shareholders” for saying before the 2014 annual general meeting (AGM) that Sir John would step down from the role to give way to Crawford Gillies.

Sir John is still in the post 11 months later, the LAPFF says.

Barclays declined to comment on the resignation call.

Barclays was widely criticised by shareholders for its pay policy at the 2014 AGM.

In a strongly worded statement, LAPFF chair Kieran Quinn said: “It is inexplicable how Barclays can have gone back on its promise to the 2014 AGM that Sir John would step down.

“Having messed up remuneration for 2013 Sir John has in fact stayed on as chair and presided over another year of still unacceptably high pay for 2014, and is still in place in March 2015.

“It’s nothing short of misleading shareholders.”

Mr Quinn went on to say that Sir John’s involvement in awarding “grossly excessive bonuses” and his support for former chief executive Bob Diamond, amongst other things, had been “disastrous for shareholder returns and the reputation of the bank”.

The LAPFF represents pension funds with collective assets under management of over $240 billion.

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