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Following the trend in the UK’s banking sector, Santander UK is the latest bank to divulge a detailed report on how much its top executives received in 2012, a year full of controversy and billion pounds of fines that hit the sector.
In its unedited annual report released earlier today, Santander disclosed there were 19 people at the bank who were paid over £1 million, including two executives who were given a combined £2.8 million as “golden hellos”.
Golden hellos are a common corporate practice a number of investors and stakeholders oppose to that gives pay to incoming executives even before they join a firm.
Yesterday, a negative public reaction was heard after UBS was reported to have paid £17 million worth of package to welcome its new Investment Banking head, Andrea Orcel.
Stephen Jones, the bank’s Finance Director hired in March 2012, received £1.6 million after he was bought out of his job from Barclays, putting the total amount he received to £2.8 million.
Chief Executive, Ana Botin, who received the highest remuneration, received over £3.9 million last year, with more than £1.8 million of the said amount considered as performance-related.
Compliant
But the bank, in its full annual report text, insisted it “has ensured that all policies, processes, governance and practices are compliant” with the Remuneration Code of the UK regulator, Financial Services Authority.
The Royal Bank of Scotland said last week it paid over £1 million each for 95 of its staff in 2012, whilst Barclays paid between £1 million and over £5 million to 428 personnel. HSBC, last month, disclosed it paid over £1 million each to 204 employees, including 78 people based in the UK.
In general, Santander said it had lower staff remuneration cost last year, despite achieving a 4% increase in after-tax profit to £939 million and rise in core tier 1 capital to 12.2%, whilst it boosted its lending to small and medium enterprises by 18% to £3.4 billion.
“This was a sound financial and business performance in the context of the economic and regulatory backdrop of the UK,” Santander stated in defence of its remuneration package for the year.
There were no long-term incentive plan (LTIP) – a pay package wherein which a sizable portion of total pay to executives are derived – that was granted in 2012.
Shares of Banco Santander were down 1.2% to £5.11 at 3:00 PM GMT.
