Commenting ahead of Metro Bank’s AGM, Ashley Hamilton Claxton, head of responsible investment at Royal London Asset Management, said:
“Following engagement with the board of Metro Bank, Royal London Asset Management has decided to vote against the re-election of eight directors at this year’s AGM. We continue to have significant governance concerns, and believe that weak oversight by the board may be a contributing factor to ongoing issues at the company, including the adjustment to risk-weighted assets, FCA and PRA investigations, recent capital raise and significant fall in the share price.
“In our view only five out of the 11 directors are independent, and we do not consider the chairman to be independent either.
“We are voting against the re-election of the CEO Craig Donaldson, three long-serving directors on the risk oversight committee, the chairman of the nomination committee and one other long-serving non-independent director.
“While we acknowledge the important leadership role Vernon Hill provides to the business, and welcome his continued involvement with the company, we strongly urge Metro Bank to improve the level of independence in the boardroom and look to appoint a truly independent chairman. As such, we are voting against Vernon Hill’s re-election.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £114 billion of assets and employs 92 investment professionals as at end December 2018. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued February 2019 by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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