THE Co-operative Party think tank, Mutuo, has called on Standard Life members to resist proposals to demutualise the organisation.
Mutuo say that Standard Life's recent poor performance is the result of decisions taken by managers and cannot be blamed on the its mutual status.
"As has been the case in every de-mutualisation, the main beneficiaries are not the members, but senior managers who cash in with enhanced remuneration packages," says a Mutuo statement.
"For Standard Life members, the short-term value of the slim payouts from de-mutualisation would soon be eroded by the cost of rewarding equity shareholders.`
Mutuo Director Peter Hunt added: "We reject the argument that FSA regulation is driving Standard Life towards this decision. Other mutuals continue to prosper and offer market leading financial services; and continue to share the benefits of their mutual status with their members."
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