CLYDESDALE Bank owner CYBG yesterday pledged to focus on “greater transparency” on executive pay, after a major vote against its remuneration report at its annual general meeting in January that it described as “disappointing”.

Opposition to CYBG directors’ report on remuneration for the year to September 2018 amounted to 34.21 per cent of shares voted at the AGM in Melbourne.

CYBG noted yesterday this AGM resolution had been passed, with 65.79% of shares voted in favour. But it said it “recognises the large number of votes opposing the resolution”. CYBG added: “This was a disappointing result.”

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It noted it had “committed to further engaging with shareholders on the implementation of its remuneration policy” following the AGM “to ensure shareholder views are fully understood and considered”. The bank revealed members of its board and executive management team had since the AGM consulted with its largest shareholders in the UK and Australia, between them representing around 60% of CYBG voting rights, on matters including its approach to remuneration.

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CYBG said: “The board has concluded that, while we have majority support for our approach and our disclosure levels were generally good, some shareholders would like to see greater transparency. This will therefore be a focus for us moving forward and, in particular, we will seek to be clearer over our processes such as those for determining awards for executive directors, calculating annual awards and where judgement and discretion is applied by the remuneration committee. “

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It added: “All of these will be considerations as we continue to evaluate the most appropriate remuneration structure for executive directors, how these align with internal CYBG pay structures and external market competitiveness.”

Chief executive David Duffy’s pay fell to £1.83million in the year to last September, from £2.06m.