£1.46m pay package of Santander’s former head

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Antonio Horta-Osorio, who last year resigned as the head of Santander UK to become the new chief executive of Lloyds, was paid £1.46m by the Spanish bank last year.

In its annual report published yesterday, Santander UK said Mr Horta-Osorio was paid a basic salary of £797,000, while he also got further benefits – such as bonuses – of £665,000.

Santander UK added that its chairman Terence Burns was paid £520,000 last year.

Mr Horta-Osorio’s pay paled in comparison to the £6.5m bonus given to new Barclays boss Bob Diamond and to the potential £7.7m pay package of Royal Bank of Scotland chief executive Stephen Hester.

Last year Santander UK said that Ana Patricia Botin would replace Mr Horta-Osorio at the helm of the group.

At Lloyds, Mr Horta-Osorio could end up earning more than £8m in cash and long-term awards if he meets all his performance targets.

It emerged this week that Lloyds staff in Halifax are facing job cuts after the banking giant announced plans to axe 570 jobs and outsource more than 560 posts.

The jobs will be lost from the group’s wholesale, retail, insurance and human resources divisions, affecting many parts of the UK, including Chester (140 jobs), Scotland (90), Halifax (85), London (50) and Manchester (50).

The cuts take the total number of jobs lost since Lloyds merged with TSB two years ago to more than 26,700. Unite said the latest news will be met with “despair” by the bank’s staff.

Lloyds also announced that a further 560 jobs will be outsourced to other firms, affecting cheque and credit processing, mailroom and payroll functions.

The firm said: “Lloyds Banking Group is committed to working through these changes with employees in a careful and sensitive way. All affected employees have been briefed by their line manager.

“The group’s union partners – Accord, GMB, LTU and Unite – were consulted prior to this announcement and will continue to be consulted throughout the process.

“The group’s policy is always to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.

“Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary severance. Compulsory redundancies will always be a last resort.”

David Fleming, national officer of Unite, said: “The news that Lloyds Banking Group is to cut a further 570 jobs and outsource almost 600 jobs will be met with despair by the bank’s staff.

“Just two weeks ago, this taxpayer-supported organisation announced profits of £2.2bn. Yet this decision represents a total failure by Lloyds to recognise that this turnaround is the outcome of the work of their staff.”