HBOS deal maker picks up pension of £342,000

Published on Friday 3 April 2009 19:42

PETER Cummings, the former Bank of Scotland deal maker, is drawing a £342,000 a year pension aged just 53, the HBOS annual report confirmed yesterday.

Cummings, the former head of Bank of Scotland Corporate, which contributed heavily to HBOS's toxic loans, was entitled to receive his pension before he reached 60 because he was made redundant when the bank was taken over by Lloyds.

The annual report, published yesterday, points out that, because Cummings waived a 1.3 million bonus which HBOS was contractually bound to pay, he received less than he was legally entitled to.

UKFI, the body set up to manage the government's stake in Britain's banks, sought – and received – assurances from HBOS that Cummings and the bank's other former directors had not been paid more than it was legally obliged to when they were made redundant.

Yesterday's report also confirmed that Andy Hornby, HBOS's 41-year-old former chief executive, will be entitled to a pension of 240,000 at 55.

Hornby, who briefly stayed on as a consultant following HBOS' takeover by Lloyds, was given salary and pension contributions worth 1.33m in 2008, down from 1.67m in 2007.

While Hornby waived his right to a severance payment, he was paid a statutory redundancy payment of 2,970.

None of HBOS executive directors were awarded bonuses, the report said.

Dennis Stevenson, the bank's former chairman, was paid salary, fees and benefits of 815,000, a fall of less than 1 per cent on the 821,000 in 2007.

All of the bank's non-executive directors, except Kate Nealon, were paid more in salary in fees in 2008 than in 2007, with former deputy chairman Sir Ron Garrick paid 258,000.