Value of bank directors' shares drops £49m

  • Story by: Gemma Westacott
  • Magazine: FTAdviser
  • Published Friday , October 10, 2008

Executive directors of UK banks have seen £49m knocked off the value of their own shares in the banks they work for so far this year.

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Figures from financial information website DigitalLook.com revealed that the value of directors' have had the value of their shares halved as the credit crunch has deepened, with the total value falling from £98m to £49m since the start of the year.

The biggest loser so far this year is Bob Diamond, chief executive officer (CEO) of Barclays Capital, whose stake has dropped £9m since New Year's day to its current value of £7.65m.

Royal Bank of Scotland Group CEO Sir Fred Goodwin comes in a close second with a loss of £7.1m on a stake that was worth £9.4m earlier this year.

Meanwhile, HBoS CEO Andy Hornby has suffered the third biggest loss, with £3.6m knocked off the value of a holding that was worth £4.4m at the beginning of the year.

Director Andy Yates said: "The wealth of directors of UK banks has taken a previously unimaginable battering."

He added: "Politicians and pundits have repeatedly said that they want to see bank directors punished, but you should be careful what you wish for.

"From here on in every pound that these bank directors lose from their shareholdings means more trouble for the UK pension funds, taxpayers and the economy as a whole."

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