Standard Chartered boss Bill Winters has landed himself a golden hello worth more than £6.3m. Too bad the bank’s share price has fallen more than 37% since he took over the top job in June.
Winters received 899,031 shares to compensate him for those he lost by leaving his previous job at Renshaw Bay, the hedge fund he founded after leaving JP Morgan in 2009. He also got 59,035 shares as a ‘fixed pay allowance’ (a means of paying staff that circumvents the EU’s bank bonus restrictions).
One might think Standard Chartered would dispense with such mega pay packages given its in fire-fighting mode. But while shareholders rebelled over BG boss Helge Lund’s £25m welcome package (trimmed to a mere £20m after the protest), they’re normally ok with compensating new bosses enough to lure them away from their previous positions.
Nonetheless, as the aforementioned share price haemorrhage indicates, investors aren’t yet sold on Winters’ kitchen-sinking. That has so far involved a boardroom clear out and announcing cost-cutting measures that aim to save $1.8bn (£1.2bn) by 2017. But shareholders have probably gloomily accepted that a multi-billion dollar rights issue is inevitable in order to prop up the ailing emerging markets specialist.
And if Winters’ turnaround doesn’t go so well, he can probably find himself gainful employment in musical theatre. Check him out in this charity video (complete with presumably-waxed chest) from 3:17.