CYBG is considering changing bonus plans for executives to appease investors.
Insiders said bosses at the bank, which is rebranding to Virgin Money, will contact its biggest shareholders. “[The plan] is to say: ‘These are the targets we’ve put in place for executives, are you comfortable?’” said one person close to the process. A final pay plan is expected to be decided at the end of the summer and announced later this year.
The charm offensive comes after more than a third of shareholders voted against bosses’ pay this year. Chief executive David Duffy and finance head Ian Smith were due to take home more but ISS, the influential shareholder advisory group, said Duffy’s rise for 2019 was “not considered warranted” given the plunge in the company’s value since it acquired Virgin Money and that the deal’s “success or failure” will not be known “for some time”. Mr Duffy has blamed the share fall on the “Brexit effect” on UK-focused banks. The call to top investors coincides with CYBG’s first US investor roadshow in two years, which starts on Monday. One insider said bosses will tell potential shareholders to grab “a bargain”.