Royal London, Hermes take aim at UK plc pay plans

* StanChart (HKSE: 2888-OL.HK - news) , Tullow, Weir, Shire (Xetra: S7E.DE - news) and Reckitt in firing line

* Fund firms call for "common sense" in remuneration planning

* Opposition follows revolts at BP, Smith & Nephew (LSE: SN.L - news) (Recasts, adds details on Hermes)

By Sinead Cruise

LONDON, April 28 (Reuters) - Two of Britain's highest profile fund firms have called on a slew of UK companies to scrap lucrative pay plans for top managers following underwhelming performance, as a rebellion against soaring executive remuneration gathers pace.

Royal London Asset Management (RLAM) said it will vote against the 2015 remuneration reports at Standard Chartered (HKSE: 2888.HK - news) and Reckitt Benckiser (Xetra: A0M1W6 - news) .

Hermes EOS, the advisory arm of Hermes Investment Management, has called on clients to oppose pay awards at Tullow Oil, Shire and Weir.

Ashley Hamilton Claxton, Corporate Governance Manager at RLAM, said investors were objecting to plans to award bumper packages, in what she described as a "spring of discontent" during Britain's peak season for annual company meetings.

"Where votes against remuneration reports have been high, several key themes stand out; complex long-term remuneration strategies, cash 'top-ups' via pension payments and a failure to use common sense and discretion," she said in a statement.

RLAM welcomed moves by loss-making Standard Chartered to simplify its compensation policy and cancel bonuses, after cancelling its dividend and conducting a $5.1 billion rights issue in 2015.

But it said it remained concerned that high pension benefits boosted the proportion of pay packages unrelated to performance.

At Reckitt, RLAM said the proposed pay awards "pushed the boundaries of acceptability in the UK".

Hermes EOS criticised Shire and Tullow for proposing awards that it felt did not fairly reflect the long-term shareholder value created at both firms last year.

"We do not support the increase in salary of 25 percent for the (Shire) CEO, Dr Flemming Ornskov, particularly given that his overall bonus potential is more than 10 times his basic salary and his total remuneration was over $21 million last year," Hermes said in a statement.

The adviser also recommended clients oppose the remuneration policy drafted by Weir, which comprised the proposed award of restricted shares untied to performance targets.

Oil firm BP and medical equipment firm Smith & Nephew have already seen investors reject last year's payouts in non-binding votes, while shareholders in miner Anglo American (LSE: AAL.L - news) also reacted strongly against its pay plans during a year of tumbling share prices and lower returns. (Reporting by Sinead Cruise; Editing by Simon Jessop and Ed Osmond)