Leeds and Skipton chiefs enjoy pay package rises

Skipton Group Chief Executive David Cutter.
Skipton Group Chief Executive David Cutter.
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THE chief executives of Leeds and Skipton building societies saw their pay and bonus packages rise in 2012 as the mutuals grew their mortgage books and profits.

Skipton CEO David Cutter’s total pay and benefits surged 29 per cent to £623,000. Mr Cutter’s basic pay edged up about two per cent to £352,000, while his bonus more than trebled to £181,000 following a turnaround in the group’s loans and savings business.

Skipton’s pre-tax profits surged to £36.4m from £22.2m and its mortgage book increased by 3.5 per cent to £10.5bn as it grew its market share.

A Skipton spokeswoman said: “All of our directors’ remuneration is benchmarked at levels needed to attract and retain people with the appropriate talent and experience to run a diversified group comprising over 8,400 staff.”

Skipton plans to introduce a long-term incentive plan this year.

Leeds Building Society’s CEO Peter Hill received pay and perks totalling £581,000 in 2012. That included a £310,000 salary and a £200,000 bonus of which 40 per cent is deferred.

There was no direct comparison with total remuneration in 2011 as former CEO Ian Ward left part way through the year, but it was up from £480,000 in 2010.

Mr Hill’s basic pay rose 8.3 per cent in 2012, “reflecting a successful first full year in post and a benchmarking of his position versus other ‘in post’ chief executives”.

That was during a year when Leeds’ pre-tax profit rose by four per cent to £52.4m and net mortgage lending hit a record £737m.

Yorkshire Building Society’s annual report recently showed chief executive Chris Pilling received a total remuneration package of £748,000 last year. That included a salary of £462,000 and a bonus of £389,000, which has deferred elements subject to future performance. Mr Pilling joined the Yorkshire from HSBC.

The Yorkshire also said senior management’s basic pay will rise by 10.27 per cent this year, and Mr Pilling’s by 20 per cent, to “ensure that overall remuneration packages remain competitive”.

Santander UK also revealed chief executive Ana Botin earned almost £4bn in pay and perks in 2012. Ms Botin’s £3.96m total package was down on £4.07m in 2011 after a year when its net lending fell by £9.4bn, with gross lending down 38 per cent to £14.6bn

Her fixed pay was up 15 per cent to £2.09m but Ms Botin’s bonus fell 27 per cent to £1.86m.

Total remuneration of Santander UK directors was up almost 15 per cent to £10.07m from £8.76m a year earlier.

Chief risk officer Jose Maria Nus saw his remuneration surge more than 50 per cent to £2.45m.

A Santander spokesman said: “We think we are well placed and the remuneration reflects that.”

The lender shrunk its mortgage lending but hiked its lending to small and medium-sized businesses 18 per cent in 2012.