REVIVED high street bank TSB yesterday tried to differentiate itself from other banks by vowing to keep bonuses relatively low – yet these could still be 100 per cent of base salary for executives.
The bank claims its policies are inspired by market leaders such as John Lewis – for instance, all staff will be given £100 of shares and will have to retain them if they want to receive bonuses.
The lender will pay most staff bonuses of up to 15 per cent of their salaries, basing the awards on good customer service.
For executives, bonuses could rise to as much as 100 per cent of base salary in exceptional circumstances, the bank said.
Those bonuses for the bank’s bosses will be paid in cash and shares, and spread out over five years.
It will not ask shareholders for the right to pay up to 200 per cent of salary, the maximum allowed under the EU’s bonus cap rules – as most of its big rivals have done.
Chief executive Paul Pester will receive a salary of £700,000. His maximum, including bonuses and pension allowances, could come in at as much as £1.68m.