TSB is to recognise staff with a £28 million pay award as part of the organisation’s annual short-term incentive plan.
The TSB Award, which is available for all employees from the chief executive officer to front line staff, rewards both business and individual performance based on set targets and key performance indicators.
The bank’s remuneration committee has approved a TSB Award totalling more than £28 million for 2016 in recognition of the organisation’s business performance over the year.
All employees who have an ‘on track’ performance rating will receive an award worth 12.5% of their base salary in March 2017. Employees who have an outstanding ‘pioneer’ performance rating will receive up to double that amount.
Through the TSB Award, the bank aims to provide an award worth 10% of base salary for ‘on target’ staff, which may be increased to 15% of base salary if warranted by corporate performance. Employees with a ‘pioneer’ performance rating can receive a possible 30% of their base salary as a pay award, set at a maximum of two times the core award.
The final level of the TSB Award is based on corporate measures such as customer outcomes, financial resilience metrics and the achievement of business objectives, while individual performance is assessed by whether an employee has met their minimum performance criteria, such as customer service targets, to receive an ‘on track’ rating, or excelled to reach a ‘pioneer’ rating.
Paul Pester, chief executive officer at TSB, said: “I’m delighted that our partners will share in this success with the TSB Award paying out 12.5% of basic salary, equivalent to more than six weeks’ pay, and over £28 million in total.”