Investors in Metro Bank are being advised to vote against the lender’s remuneration report at next month’s annual meeting. The call comes in response to a complex bonus plan that shareholder advisers describe as significantly misaligned with market norms. Institutional Shareholder Services, which provides voting guidance to major investors, issued the recommendation ahead of the 2 June meeting. This marks the second straight year the adviser has raised issues with the bank’s compensation practices. The main concern involves the board’s use of a bonus structure called the shareholder value alignment plan, which ties executive rewards to share price performance irrespective of operational results. Under the scheme, chief executive Dan Frumkin could receive up to £60m. The adviser also noted salary increases planned for 2026, including an 11.3% rise for Frumkin to £1.05m. It described the new level as relatively high for a FTSE 250 company of Metro’s size. Frumkin’s total pay more than doubled to £2.6m in 2025. The report criticised limited disclosure on how non-financial targets were assessed. Despite these points, the bank posted record revenues and profits last year, and its share price rose more than 25%. Metro Bank is pursuing a shift toward corporate lending following a 2023 rescue package. A bank spokesperson said the remuneration approach supports long-term growth and aligns with shareholder interests.
