Revealed: The huge pay increases awarded to building society bosses

David Cutter, chief executive of Skipton Building Society, received the biggest rise - 19 per cent - for his role at the top of the UK’s fourth largest building society.

The mutual reported a 15 per cent rise in total group pre-tax profits to £168.9m in 2016, up from £146.9m the previous year, and also increased its mortgage lending and customer base.

However, the mortgage and savings division produced a reduced profit before tax of £96.9m, down 6.3 per cent on the previous year, while its net margin also fell.

Mr Cutter’s £831,000 package for 2016 included a £490,000 salary, a 17 per cent rise from £418,000 in 2015. He also received performance-related rewards of £161,000 and £157,000 plus a pension contribution of £98,000 and £15,000 worth of benefits. He earned a total of £696,000 in 2016.

A Skipton spokeswoman said: “The remuneration of executive directors reflects the very strong performance of the Skipton group during 2016.”

Peter Hill, chief executive of Leeds Building Society, the UK’s fifth largest building society, saw his total remuneration rise by 12 per cent to £728,0000 in 2016.

The lender reported record pre-tax profits for the fourth consecutive year.

Profit before tax reached £116.6m, up from £108.5m the previous year, while the society also increased total membership to more than 756,000, the highest in its history.

Mr Hill’s package included a salary of £387,000, an annual bonus of £252,000 and a pension contribution of £89,000.

A spokesman for the mutual highlighted the mutual’s record performance.

“The remuneration committee agreed a salary increase for Peter Hill following independent benchmarking with similar roles in the UK,” he said.

He added: “Last year, 90 per cent of members voted in favour of the director’s remuneration report.”

Meanwhile, Yorkshire Building Society saw outgoing chief executive Chris Pilling take home £701,000, including a salary of £590,000, up three per cent from £571,000 in 2015.

He also received a pension contribution of £96,000 and £15,000 in benefits but no bonus due to his resignation.

Mike Regnier, who was promoted from chief customer officer to chief executive in January this year, received a total remuneration package of £625,000, including a salary of £376,000, a £177,000 bonus, £11,000 worth of benefits and a pension contribution of £61,000. The UK’s second largest building society returned a pre-tax profit of £152m in 2016, down from £173m the year before as it continued to restructure the business.

In January YBS announced that it would be shutting 48 branches and risking 440 jobs as it looks to create better “long-term value” for customers.

A spokeswoman said: “Chris Pilling received a pay rise in 2016 as part of the annual pay review.

“Mike Regnier received a two-stage pay increase between May 2015 and May 2016 to reflect the additional responsibilities he attained, which included the branch and distribution network and Accord (Mortgages), following Ian Bullock’s retirement in 2015. The pay rise was linked to performance in the role and included the annual pay review.”