Provident Financial's former boss Peter Crook surrenders a year of pay and bonuses

Oliver Gill
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Peter Crook left Provident Financial as the lender revealed profits for 2017 would be wiped out

The former boss crisis-hit doorstep lender Provident Financial has agreed to forgo a year's worth of salary, benefits, and bonuses.

Peter Crook, who left the firm in August as the firm revealed a shopping list of problems, was entitled to pay over a 12-month notice period.

But in a short statement today, the Provident Financial said Crooks has waived his rights to such pay.

Crook will also be entitled to a pension from Provident worth almost £1.3m when he turns 55 next July.

And he has a number of outstanding share awards under Provident's performance share plan. But these will be subject to clawback provisions, the lender said.

Read more: Provident Financial has just handed rival Morses a whopping profits boost

Shares in Provident collapsed over 70 per cent in August after the firm warned profits would turn into annual losses as it was struggling to collect debts. The firm's travails followed an operational restructuring earlier in the year that undermined staff confidence.

Crook left the firm with immediate effect with executive chairman Manjit Wolstenholme leading attempts to turn the firm around.

Last Friday, it was announced Wolstenholme had persuaded the former head Provident's home credit business – Chris Gillespie – to return, replacing Andy Parkinson with immediate effect.

Shares have made progress since the Crook's departure but have not risen sufficiently to prevent Provident falling out of the FTSE 100. The firm's market capitalisation is approximately 30 per cent of what it was in May.

Read more: Provident Financial shares rise 22 per cent as it shakes up credit business

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