BS bosses’ pay lags banks

BS bosses’ pay lags banks

Building societies and mutuals have awarded their chief executives far less than the packages paid out to bosses at the major banks, figures have revealed.

According to their accounts, the largest building societies awarded their chief executives hundreds of thousands of pounds in remuneration for 2014.

In its report on directors’ remuneration for 2015, Nationwide revealed a total pay package excluding legacy of £2.3m for chief executive Graham Beale, compared to £2.5m for 2014.

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Chris Pilling, the Yorkshire Building Society chief executive, received £923,000 in total remuneration for 2014, while Coventry Building Society boss Mark Parsons received £314,000.

Mutuals also awarded significant amounts. LV= gave chief executive Mike Rogers £1.6m in total remuneration for 2014, while Co-operative Group’s Richard Pennycook received total remuneration of £2.5m for 2014.

However, large banks operating in the UK have paid substantially more to their executives. Stuart Gulliver, the HSBC chief executive, received a £7.6m single figure of remuneration for the year.

Royal Bank of Scotland’s Ross McEwan received £1.8m for 2014, while Lloyds Banking Group’s António Horta Osório received £11.5m in total 2014 remuneration before buy-outs.

Adviser view

Mike Malster, partner at Leicestershire-based Martin-Redman Partners, said: “It was in the 1970s that the process started whereby financial services remuneration really exploded - but organisations such as mutuals were much more contained on this front.”