Standard Life Aberdeen – AGM 12 May 2020
Item 2: Final dividend
The proposed dividend raises several concerns: it is not covered by consolidated earnings and free cash flow. In 2018 and 2019, the group reported operating losses which were covered by proceeds from divestments. Standard Life Aberdeen sold its UK and European insurance business in 2018 and its stakes in HDFC Life and HDFC Asset Management in 2019 to maintain the current level of dividends. In total with share buybacks, Standard Life Aberdeen returned £1.8bn in 2018 and £1bn in 2019 compared to the current market capitalisation of £4.6bn.
Item 5: Remuneration report
The 2019 bonus payout is not aligned with the company's performance. While the company reports the decrease in assets under management and administration, write-offs and operational losses, the bonus outturn achieved 125% of base salary.
Item 6: Remuneration policy
We appreciate the proposed changes which made the remuneration less complex and better aligned with the overall performance of Standard Life Aberdeen and shareholder value creation. However, the proposed maximum incentive leads us to recommend opposition.
Standard Life Aberdeen is a holding company. Through its subsidiaries, Co. is managed into following segments: Aberdeen Standard Investments, which provides a range of investment products and services for individuals and institutional customers through a number of different investment vehicles; Pensions and Savings, which provide a range of long-term savings and investment products to individual and corporate customers in the U.K., Germany, Austria and Ireland; and India and China life, which provides a range of insurance and savings products and comprise Co.'s life insurance associate in India, its life insurance joint venture in China, and wholly owned operations in Hong Kong.
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