Since the onset of the credit crunch, it has continued to report substantial profits and its strong funding and capital position has enabled it to grow throughout the economic downturn.
The completion of its merger with Stroud & Swindon Building Society on 1 September 2010 certainly helped, it cemented its place as the third largest building society in the UK, increasing its total membership from more than 1.2m to roughly 1.5m members and overall asset size from £18.4bn to £21.1bn, with 1600 staff and over 60 branches to boot.
Profits
In August this year the society announced record profits during the six months ended 30 June 2012. It also posted a record share of the mortgage market, with mortgage balances growing by £1.3bn – equivalent to 45 per cent of all net mortgage lending in the UK.
The results also revealed that its profit before tax increased by 17 per cent to £52.8m, its mortgage assets jumped up £1.8bn to £21bn, its new mortgage lending improved by 33 per cent to £2.5bn and its savings balances soared by £300m to a record £19.3bn.
Speaking at the time, chief executive David Stewart – who has been at the helm for six years – said that he remained confident that the society was well positioned to continue to prosper in what was (and still remains) an uncertain economic environment.
Although we are not yet able to see how directors, including Mr Stewart himself, have personally fared throughout such continued uncertainty in 2012, a look at Coventry’s 2011 annual report indicates what they might be in for – and it is not too shabby.
Remuneration data for January to December 2011 showed that the society’s 23 senior managers, up by three on 2010, received fixed pay of £2.9m, up £0.6m on 2010, and variable pay of £0.5m.
What Coventry classes as its “other material risk takers” totalled 14 people – up one on 2010 – who received £0.9m – £0.2m more than in 2010 – and £0.1m variable pay.
A look at Mr Stewart’s numbers reveals he earned a salary of £335,000 in 2011, £21,000 more than he pocketed in 2010, and an annual bonus of £44,000, up £9,000 on the previous year.
Pension
Along with £44,000 in long term incentive plan, £58,000 in pension contributions, a £2,000 increase in accrued pension and £42,000 taxable benefits, Mr Stewart took home a total of £525,000 in 2011.
However, after electing to waive £38,000 of his payments, his final total remuneration package was unchanged from 2010 and stood at £487,000.
