Standard Life chief takes 20pc pay cut despite profits on the rise

Standard Life's chief executive has taken a 20pc pay cut - despite the insurer and asset manager putting in a better than expected performance in its annual results.

Keith Skeoch was paid £2.75m in 2016, down from £3.46m the year before, according to the FTSE 100 group's annual report.

The report, released at the same time as annual results which showed pre-tax operating profit of  £723m, ahead of the £684m expected, revealed investor concern over executive pay at the business.

Standard Life has been an active campaigner against what is seen as excessive pay levels in the boardroom. However, its own remuneration committee report revealed the business had been the subject of shareholder disquiet over pay for its bosses.

Mr Skeoch last year volunteered for a cut to his total pay package, but last year the company suffered an investor revolt over pay, with 22pc of shareholders voting against pay plans at the AGM in May.

The remuneration report revealed "concerns" from investors over pay and "open, frank and constructive" discussions about how to shape pay structures. to avoid future embarrassment at AGMs.  

Standard Life's results showed that while profits rose 9pc, the company's flagship investment fund had suffered from investors pulling their money out.

Although best known for life insurance, the blue-chip business is now shifting its focus on to asset management.

While overall assets under management rose 16pc to £357.1bn in the year to the end of December, Standard Life’s Global Asset Return Strategies (GARS) fund suffered a £4.3bn “outflow” - people withdrawing their money.

Standard Life 1-year share price

The fund has returned only 0.4pc over the past year, a fraction of the sector’s average, after positions it took went awry.

Mr Skeoch said the company’s overall better performance came despite wider economic fears such as the stuttering Chinese economy and fund managers across the sector seeing outflows in the wake of the Brexit vote.

He added the company has contingency plans in place as a result of the EU referendum that could see it add staff in European nations to help oversee its funds.

Mr Skeoch added: “Despite industry headwinds, we are benefiting from our strengthening global brand and strong long-term relationships with a well diversified range of clients and customers."

The results also showed that Standard Life made £175m in provisions for compensation payments following the Financial Conduct Authority's review of annuity sales last year.

Standard Life will pay a final dividend of 13.35p, taking the full-year shareholder payout to 19.82p, up 8pc on last year.