Pension Fund Forum Urges Members to Vote Down Barclays Accounts
The Local Authority Pension Fund Forum recommended members vote against Barclays Plc (BARC)’s annual report and accounts saying the rules the lender follows may have allowed it to overstate earnings.
“Overstated profits have been used to calculate and justify executive bonuses and long-term remuneration schemes,” the forum said in an e-mailed statement, urging its members to oppose the report at the annual general meeting on April 25.
The group, whose members oversee about 115 billion pounds ($177 billion), has been criticizing the IAS 39 International Financial Reporting Standards rule for at least two years.
The group has said the rule prevents banks from using their own data to anticipate future losses from loans before they occur, stopping lenders from booking potentially bad loans and allowing them to justify higher compensation.
Phillippa-Jane Vermoter, a spokeswoman for London-based Barclays, declined to comment.
To contact the reporter on this story: Gavin Finch in London at gfinch@bloomberg.net
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
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