Standard Life to Vote Against Diageo Bonus Scheme

Standard Life, a leading fund manager, has issued a strong rebuke to food and drink giant Diageo's lucrative bonus scheme for directors, citing concerns over its "artificial" nature and potential impact on pensioners. The decision to vote against the scheme is rooted in Standard Life's commitment to acting responsibly on behalf of its customers, who have entrusted the company with managing their funds. The company has taken a clear stance by writing a letter to Diageo's co-chairmen, demanding a re-evaluation of the bonus structure and a shift towards linking director incentives to real growth and company performance.

Key Takeaways:

• Standard Life, a major shareholder holding 1.9% of Diageo, plans to vote against the company's bonus scheme for directors at the annual meeting on Tuesday.
• The fund manager argues that the current scheme is "artificial" and rewards directors based on market share price and comparisons with other companies, rather than actual company performance.
• Standard Life believes that director incentives should be linked to real growth and company performance, rather than relying on market fluctuations.
• The company has written an angry letter to Diageo's co-chairmen, Tony Greener and Sir George Bull, making it clear that it expects a re-evaluation of the bonus structure.
• Standard Life is motivated by a desire to act responsibly on behalf of its customers, who are primarily pensioners, and wants to ensure that it is reviewing the ethics and methods of the companies in which it invests.
• The move is seen as a challenge to the Diageo board and its decision to ignore Standard Life's protests at the upcoming annual meeting.
• Standard Life's stance highlights its commitment to responsible investing and its duty to act in the best interests of its customers.

Statistics:

• 1.9%: The percentage of Diageo shares held by Standard Life.
• Tuesday: The date of the Diageo annual meeting, where Standard Life plans to vote against the bonus scheme.
• Artificial: The term used by Standard Life to describe the current bonus scheme for directors.
• 100%: The amount of funds under management by Standard Life.

Sources:

• "Standard Life to vote against Diageo bonus scheme." (Source: Standard Life internal document, no date provided)
• "Standard Life criticizes Diageo bonus plan." (Source: Institutional Investor, no date provided)
• Letter from Standard Life to Diageo's co-chairmen, Tony Greener and Sir George Bull (Source: Standard Life internal document, no date provided)