Yorkshire Bank stays off bonus bandwagon

The industry has been engulfed in a row over multi-million pound payments to individuals and, despite Government calls to curb the excesses, UK banks are expected to pay out billions of pounds.

Commentators have said that the best that the coalition can hope for is a promise that the banks will pay out less than they would have done without Government intervention.

Last year Lynne Peacock, chief executive of Yorkshire and sister bank Clydesdale, opted to take a lower bonus despite the group's strong performance.

Yorkshire Bank spokesman Barry Gardner said: "As we are a traditional retail and business bank, we don't operate in the areas of the industry which generally attract large bonus payments.

"The bonus awards we made in December have continued to be comparatively modest and very closely linked to stretching personal and business performance targets."

Ms Peacock received a 440,000 basic salary in the year to September 30 – up by 4,000 – and together with bonuses and allowances her total package was 1.51m, down from 1.66m.

"While you only have to look at our support for customers and recent full year results to see the significant achievements made by our business, our chief executive chose to receive a bonus some 40 per cent lower than she was entitled to," said Mr Gardner.