Metrobank Shareholders Urged to Oppose Pay Report
Investors in Metrobank are being encouraged to vote against the upcoming pay report due to concerns over a complicated bonus scheme that, according to shareholder advisers, strays “significantly” from market norms.
Institutional Shareholder Services (ISS), which provides proxy voting guidance to major investors globally, suggested this a few weeks before the bank’s annual general meeting set for June 2.
This marks the second consecutive year that proxy advisors have voiced criticism over the pay practices of banks. The focus is on Metrobank’s board and their implementation of a complex bonus structure called the “Shareholder Value Adjustment Plan” (SVAP), which links executive pay to the bank’s stock performance, regardless of managerial effectiveness.
Notably, Metrobank’s CEO, Dan Frumkin, stands to gain around £60 million by the end of this scheme.
ISS pointed out that “the plan remains a significant deviation from market standards.” They expressed that their unease regarding the stock-driven bonus structure was intensified by a planned pay increase in 2026, where Frumkin’s fixed salary could jump by 11.3% from £943,500 to £1.05 million.
The report further mentioned that the new salary arrangements seem rather elevated for a FTSE 250 company of Metrobank’s size, indicating that shareholders might want to consider that the CEO had previously received a roughly 20% pay hike in 2024.
Moreover, the lifting of caps on bankers’ bonuses in the UK has notably benefited Frumkin, whose salary is set to more than double to £2.6 million in 2025, up from £1.2 million last year. This would make him the highest-paid CEO in Metrobank’s history since its inception in 2010.
Concerns were also raised about insufficient transparency regarding how Metrobank measures and assigns bonuses tied to non-financial goals, with the report indicating that explanations concerning “talent targets” and “risk and regulatory targets” were quite vague.
As for the salary report that will be subject to an advisory vote at the upcoming meeting, ISS commented, “It is natural to vote against this item.” This recommendation comes despite the acknowledgment that the bank recorded its highest pre-tax profit last year and that its stock price has been on an upward trend, increasing by more than a quarter in 2025.
After facing a near collapse in 2023, Metrobank has committed to a turnaround plan aimed at boosting corporate lending. This effort was partly in response to a £925 million rescue deal led by Colombian billionaire Jaime Gilinsky Bacal, who currently holds a 53% stake in the bank.
A spokesperson for Metrobank noted, “The Human Resources and Remuneration Committee’s approach is focused on long-term growth and the ongoing restructuring of the bank. This policy aligns with shareholders’ interests and aims to create sustainable value for all stakeholders.”
