Revealed: pay and perks for building society CEOs

Chris Pilling at Yorkshire Building Society received the biggest package at £918,000 for his role at the top of Britain’s second biggest building society.

The Leeds and Bradford-based lender reported an 8 per cent fall in pre-tax profits in 2015 as competition intensified in the mortgage and savings markets.

Mr Pilling’s total remuneration includes a salary of £571,000, a pension contribution of £92,000, variable pay for in-year performance of £71,000 and deferred variable pay from previous years of £169,000. He earned a total of £923,000 in 2014.

David Cutter, chief executive of Skipton Building Society, received £666,000 in 2015, down from £699,000 in 2014.

The lender saw pre-tax profits fall to £146.9m in 2015, down from £180m the previous year.

His total remuneration includes a salary of £418,000, performance pay of £149,000 and a pension contribution of £44,000.

Skipton is Britain’s fourth biggest building society and a major employer in North Yorkshire.

Peter Hill, chief executive of Leeds Building Society, saw his total remuneration rise by 10 per cent to £649,000 in 2015.

The lender reported a 24 per cent rise in pre-tax profit to £108.5m during the year.

Mr Hill’s package includes a salary of £348,000, an annual bonus of £226,000 and a pension contribution of £75,000. Leeds is Britain’s fifth biggest building society.

The men are among Yorkshire’s best-paid executives. Average director remuneration in the region’s top 50 companies was £359,000 according to BDO, the mid-market accountancy firm.

Building societies have been responsible for much of the growth in mortgage lending in recent years as banks retrenched to repair their balance sheets.

The return of competition to the high street has stepped up over the last year and the fight for customers is set to intensify.

Margins are expected to remain under pressure as the Bank of England keeps interest rates pinned at historic lows.

Lenders are also having to invest in new technology to keep ahead of changing consumer trends.

Executive pay and perks are set by remuneration committees.

Building society members are able to vote on whether to accept the proposed remuneration packages at the forthcoming annual general meetings.