Crawford Gillies will leave his position as head of the remuneration committee at Standard Life Plc (LON:SL) (OTCMKTS:SLFPF) in order to take a role at Barclays PLC (ADR) (NYSE:BCS) (LON:BARC), according to a statement from the esteemed banking house. The executive is set to join Barclays as non-executive director and a member of the board remuneration committee on May 1, according to the release.
Gillies has held the position on the remuneration committee at Standard Life Plc (LON:SL) (OTCMKTS:SLFPF) since 2007. Before joining that firm he served at Bain & Co, where he was managing director in Europe between 2001 and 2005. The appointment comes at an important time for the company as it deals with shareholder dissent over the company’s compensation.
Barclays pay conflict
Gillies will replace John Sunderland as head of the remuneration committee some time after he takes his position on the board at a date to be agreed upon. Mr. Gillies has been announced as a member of the committee just days before the Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) annual shareholder meeting. That meeting is expected to bring to the surface a simmering conflict about compensation at the bank.
According to Sky News, who reported on Mr. Gillies appointment earlier today, the meeting, which is set to take place on April 24, will likely center around the company’s decision to increase bonuses despite poor results for the fourth quarter of 2013. The company holds that the bonus increase was necessary in order to keep talent at the bank.
Gillies will take to the committee at a time when it needs to balance the company’s outlook for the future against the expectations of shareholders. Those very shareholders have been hurt by the decline in Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) shares in recent months. Since 2014 began the company’s stock has declined by around 14%. In the last twelve months the firm’s stock has lost more than 12% of its value.
Gillies appointment to begin healing process
The appointment of Crawford Gillies to the remuneration committee, and the promise that he will take the chair this year, is an attempt by Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) to show that it is serious about dealing with shareholder issues related to compensation.
The company is trying to pass its most recent remuneration report past shareholders this time around, while making an effort to demonstrate commitment to reducing pay at the bank in the long term,
Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) stock fell by close to 2% on today’s market, though that likely had little to do with the announcement of Gillies as head of the remuneration Committee. The company’s stock likely suffered from a generally poor climate, as well as caution over upcoming ECB stress tests.