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.

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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.

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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)].”