THE chairman of Standard Life has said the key role played by its investment arm in the shareholder spring meant the company had to make sure its own remuneration was "in order".
Standard Life Investments has been one of the fund managers voting against executive pay packages which has already seen big challenges to companies including Cairn Energy, Barclays and Aviva.
Gerry Grimstone said he was "delighted" after the Edinburgh life assurer's remuneration report, which included chief executive David Nish's rewards package topping £2 million for the first time, was backed by more than 95% of shareholders.
He said: "We are one of the leading revolutionaries in the shareholder spring through the work Standard Life Investments do.
"Because we take those issues very seriously with other com-panies we take it very seriously ourselves.
"It has always been an absolute tenet of mine that our own house has to be in good order. If our own house isn't in good order it would diminish the voice that Standard Life Investments has. 95% is a very solid vote in this kind of climate.
"I firmly believe that the essence of good corporate governance is a strong board and there are certain characteristics that a strong board needs to have.
"It should challenge and it should be challenged. But it must always be alert to the voices of its shareholders, customers and stakeholders."
Mr Grimstone also said the financial services firm would not be slow to make its opinions known on the debate over Scotland's constitutional future if it felt there were issues which would impact the business.
He said: "It is a hugely important question and something we are monitoring very closely.
"If ever we feel the need to make our voice known we won't hesitate if it is in the interests of our stakeholders.
"But the debate has not yet got to the point where we have felt the need to do that."
During the company's annual meeting in Edinburgh yesterday Mr Grimstone and the rest of the board fielded questions for more than 45 minutes on issues ranging from returns on annuities and targets for executives to the financial complaints and how to encourage people to save more.
Regulatory changes – including Solvency II, which increases the amount of capital assurers will have to hold, and the Retail Distribution Review, which brings greater regulation to the financial advice market – were broadly welcomed.
Mr Grimstone said: "These are all very important and positive changes for us, and for our industry."
Around 400,000 new customers from businesses where Standard Life runs the current pensions scheme are predicted to be added when auto-enrolment for pensions is implemented across the UK
Between four and five million people are expected to start having a pension for a first time due to the legislation and Mr Grimstone expects Standard Life to capture its "fair share" of those people.
The chairman said the business was very well protected from volatility in the eurozone but he was keen for there to be more stability in the stock market.
He said: "Times remain
uncertain and the UK is not yet on the growth track that we all want to see.
Mr Nish told the meeting Standard Life's current strategy was "not a piece of finished work".
He said: "There is much more we can do. We are very mindful of costs and efficiencies.
"Our business is in a robust state but there are opportunities across the markets we serve."
Mr Nish will step down from the nominations committee as his membership leads American institutional investors to vote against his re-election as a director. More than 95% of shareholders voted to re-elect him as a director with the other executives receiving 99% approval.
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