Chief executive of Skipton Building Society set to receive total remuneration of £1.4m after record year in 2021

DAVID Cutter, the chief executive of Skipton Building Society, is due to receive a total remuneration for 2021 of £1.4m after the mutual achieved record results last year.

Mr Cutter's fixed remuneration is set to include a salary of £599,000, benefits of £15,000 and a pension contribution of £73,000. The mutual's members will have an advisory vote on the package at the AGM which is due to be held next month.

In January, it was revealed that after almost 30 years with the business, including 13 as group chief executive, Mr Cutter will step down from his role with effect from the society’s AGM. In early March, Skipton reported record profits as it delivered its financial results for 2021.

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A spokesman for Skipton said: "In the face of unprecedented conditions in 2020 driven by the global pandemic, the society remained open for customers and continued to perform strongly.

David Cutter, Skipton Building Society CEO

"Despite this, Skipton’s executives made the decision to voluntarily withdraw from their 2020 bonus scheme, at the time Skipton was the only building society in the UK’s largest seven to do so. As a result, the 2021 remuneration will be higher than the year before."

The spokesman added: "In addition, the 2021 remuneration reflects the record performance of the Skipton Group last year, which saw a 129% increase in pre-tax profits from the previous year."

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The spokesman added that the pay is set by a remuneration committee comprising independent non-executive directors who are supported by external professional advisers.

The spokesman added: "The pay of all executive directors is benchmarked against the marketplace to ensure it is appropriate in comparison to our peers and competitors, and sufficient to attract and retain people with the skill and capability needed to run a complex and diversified business like the Skipton Group, encompassing over 17,700 employees."

The mutual's members will have an advisory vote on a resolution to approve the directors’ remuneration policy and on all aspects of the remuneration report.

Voting closes on Wednesday April 20 and the AGM will be held on Monday 25 April.

Speaking earlier this year, Robert East, the chairman of Skipton, commented: “David has made an outstanding contribution as group chief executive for the last 13 years and during his 28 year career with the society.

"He has led the society out of the challenges of the global financial crisis, through Covid and the transformative acquisition of Countrywide Plc by Connells to the robust financial health we enjoy today.

“The growth in membership, savings balances and mortgage lending through David’s tenure show his focus and dedication to serving and delivering for our members.”

Mr Cutter added: “It has been a privilege to lead Skipton and I am extremely proud of all that we have achieved. After almost 30 years with the society, and over 22 years on the board, having completed the acquisition of Countrywide and with an expected strong financial performance in 2021 against the backdrop of the pandemic, the board and I have agreed that I will step down from my role at the AGM.

“In the meantime, it’s business as usual as the society continues to help more people have a home, help people save for their life ahead, and support long term financial wellbeing."

Last year, the society grew its savings balances by more than £1bn to £19.8bn, while continuing to pay savers ahead of market average rates.

The mutual's estate agency business, Connells completed the acquisition of Countrywide plc, creating the UK’s largest estate agency.