Clydesdale Bank’s new chief executive, David Duffy, was awarded a £500,000 signing-on bonus when he joined the group in June, giving him a total pay package of £1.35 million in his first few months in the job.
The bank’s annual report, published yesterday, said the “commencement award” will be paid in shares and will vest over a three-year period.
Duffy – responsible for the demerger and flotation of Clydesdale and Yorkshire banks as part of owner National Australia Bank’s plans to exit its UK banking operations – also received £318,000 in salary for the four months he was in the post in the financial year to 30 September. This suggests the new boss’s annual basic salary is around £1m. The report showed he also received short-term incentives of £450,000.
It also revealed that former chief executive, David Thorburn, received a total package of £1.41m during the year. The figure included £460,000 in salary plus £952,000 in benefits and allowances, which includes an unspecified sum for compensation for loss of office. In 2014 Thorburn received a total pay package of £729,000.
In a statement, Clydesdale Bank – which is expected to announce more details next month on its flotation plans – said that Duffy’s remuneration “reflects his significant PLC experience and the scope and responsibility of his role”.
It added: “This is a key leadership role at a pivotal moment in building an independent future for what would become the largest of the UK challenger banks.”
It said Thorburn stepped down in February to allow for new leadership to develop the bank.