Schroders' CEO to donate share bonus to charity

Schroders' boss Peter Harrison has donated his 2020 share bonus and part of his salary to charity after the fund manager called on other company bosses to "share the pain" of the Covid-19 crisis.

The FTSE 100 company said Harrison and fellow executive directors would donate their long-term incentive plan (LTIP) awards for 2020 to Covid-19-related causes. All directors will donate a quarter of their salary or fees for three months.

Harrison was awarded £600,000 of LTIP payments in 2019 as part of his £6.5m pay package, which was largely made up of £5.7m in bonuses. He was paid a salary of £500,000.

Schroders' employees will also be encouraged to donate up to 25% of their salaries for three months with Schroders matching unspecified amounts. The company will also make grants to charities helping those affected by Covid-19.

Harrison's pay came under scrutiny after Schroders urged bosses of companies it invests in to take pay cuts if they raise fresh capital because of financial pressure caused by the pandemic. Schroders said on Thursday it was taking no government assistance and was not laying off staff or cutting jobs during the crisis.

Schroders also indicated it was pressing ahead with its dividend unlike many other companies that are scrapping shareholder payouts to conserve cash.

The company recommended shareholders vote for all the resolutions at its annual general meeting on 30 April. The resolutions include the payment of the company's final dividend of 79p a share, unchanged from the year before.

Harrison said: "We are committed to supporting our clients, colleagues and the wider community throughout the current Covid crisis. We are not seeking any government assistance globally, nor are we furloughing any employees or enacting any related redundancy programmes.

"Our strategy of maintaining a strong capital position allowing investment in our business through the market cycle remains unchanged and we are confident that we will continue to generate value over the long term for our clients and our shareholders."

About a third of FTSE 100 companies have cut, delayed or scrapped dividends during the Covid-19 crisis to conserve cash and respond to pressure to share the burden with taxpayers, workers and suppliers.

Schroders announced the pay measures as it reported £30.4bn of net new business in the three months to the end of March. The mandate for Scottish Widows contributed £29.5bn.

Investment returns fell by £60.1bn in the stock market rout and total assets fell to £470.5bn from £500.2bn three months earlier.