Metro Bank CEO’s pay almost halved after waiving bonus in aftermath of loans blunder
Metro Bank boss Craig Donaldson saw his pay almost halved last year after waiving his bonus in the wake of a major loans blunder.
Read more: Public sentiment towards Metro Bank plunges after accounting error
Donaldson was paid £800,000 last year, down from £1.5m in 2017 following the loans error, which is being investigated by regulators.
The challenger bank’s annual report also revealed that part of chief financial officer David Arden’s bonus – share awards for last year amounting to £216,000 – have been frozen pending probes by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The lender admitted at the end of January that swathe of commercial loans had been incorrectly classified, effectively increasing its “risk-weighted assets” (RWAs) by £900m.
It then emerged that the error was identified by the PRA and not, as first claimed, by Metro Bank.
The bank further spooked investors with a £350m emergency cash call and it is still yet to begin the rights issue, which may come as it published first quarter results next week.
The regulators, along with investors, have pushed for boardroom changes but there are still no major casualties following the blunder, which has sent shares tumbling more than 50 per cent and has sparked two investigations.
Read more: Metro Bank urged to shake up board amid regulatory probes
Donaldson, who offered to resign after the error was discovered, will see his basic salary remain flat at £750,00 next year, while Arden will net a 1.25 per cent pay rise to £405,000, according to its annual report.
Under-fire chairman and founder Vernon Hill will see his annual fees remain the same at £385,000.