Co-op Bank to review directors' remuneration
The Co-operative Bank is developing a new directors’ remuneration policy, which is aimed at aligning the interests of its executive directors with the interests of its shareholders.
In its Annual report and accounts 2013 the bank stated that, while the new remuneration policy is being developed, the remuneration committee will not put a policy forward for a vote at the 2014 annual general meeting.
The report also stated that a total of £4.97 million in bonuses will not be paid out as a result of the application of malus, performance hurdles not being met and/or individuals leaving the bank.
The Co-operative Bank’s remuneration report stated:
- Executive directors received no annual salary increases for 2013. This is consistent with its 2012 report.
- Executive directors were paid a cash role-based allowance, which is determined based on the breadth and depth of the role of the individual.
- Executive directors were provided with a long-term incentive plan (Ltip). For awards made in relation to 2013, the maximum opportunity was 100% of salary.
The report stated: “The bank is developing a new director remuneration policy that will be appropriate going forward as an independent business, with the intention of aligning the interests of directors with the interests of shareholders in a manner consistent with the bank’s risk appetite.
“While the remuneration policy is being developed, the committee does not consider it appropriate to put a future remuneration policy forward for a vote at the 2014 [annual general meeting (AGM)].”