RBS gives shareholders vote on setting up retail investor committee

Shareholder groups of Royal Bank of Scotland will be given a vote later this year that could see retail investors have more of a say in some aspects of the business.

The shareholder groups ShareSoc and the UK Shareholders’ Association announced on Monday the approval of the vote to create a committee that would allow investors to have a say on controversial issues like executive pay.

The vote is set to take place in May at the bank’s annual general meeting and it will need 75% of the votes for the proposal to go through. The possibility of a shareholder committee has so far been backed by 140 investors.

ShareSoc director and co-ordinator of its RBS campaign, Cliff Weight said, “A positive vote at the AGM will be a great step forward for shareholder democracy.”

Mark Northway, chairman of ShareSoc said the vote was a “great opportunity for RBS to lead the rest of the UK towards better governance”.

“Getting the shareholder resolution on the RBS AGM agenda is a huge step forward in making all UK plcs aware of the importance of individual investors and the need for company boards to engage more effectively with all shareholders,” he added.

RBS is 71%-owned by the taxpayer, meaning the government's vote will be decisive for the proposal to pass.

The shareholder groups have been trying to get a vote since 2016 to try and avoid a repetition of the bank’s mistakes that led to a 45.5bn pound state bailout in 2008.

A spokesperson for RBS said it “been very clear in its support for enhanced corporate governance and, in particular, stakeholder engagement”.

“We have liaised closely with ShareSoc and UKSA to ensure their resolution was in a fit state to be put to shareholders at this year’s AGM.”