Mutuals award big pay rises to its chairmen

Robin Smith of Leeds Building Society saw his pay rise by 75 per cent to £125,000. The lender said it reflected the chairman’s bigger workload since the financial crisis.

A spokesman said the chairman’s fees are reviewed annually by the remuneration committee and take into account sums paid to other mutual financial services organisations and his responsibilities and time commitments.

The spokesman told the Yorkshire Post: “Since the onset of the credit crunch, and with the development of the Financial Services Authority’s more extensive regulatory approach, the time commitment for the chairman has significantly increased.

“During this period, Leeds Building Society has delivered very strong results, with membership, savings balances and capital and reserves all at record levels.

“We are also one of only three building societies with an ‘A’ long-term credit rating from both Moody’s and Fitch.”

Leeds reported a 19 per cent rise in pre-tax profits last year to £50.2m.

Mr Smith became chairman in 2007. He is a board director of Yorkshire County Cricket Club and a former senior partner of the law firm DLA Piper.

At Yorkshire Building Society, the chairman Ed Anderson saw his pay rise by 23 per cent to £135,000. The UK’s second-biggest building society announced a 12 per cent increase in profits to £129.7m for 2011.

A spokeswoman said the chairman’s increase “reflects the increased scale and complexity of the organisation following recent mergers and acquisitions.”

At Skipton Building Society, new chairman Mike Ellis received £94,000. He joined in May, replacing Alastair Findlay who was paid £28,000. The building society’s pre-tax profits fell by more than a third to £22.2m last year, although it increased mortgage lending threefold.

Meanwhile, Leeds announced yesterday that it will open more than half of its branches on Good Friday to help its members to maximise the return on their ISA savings.

The first day of the new tax-year falls over the Easter Bank Holiday weekend.