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Santander CEO Nathan Bostock banks £6.4m pay amid branch closure plan | Business News



Santander has revealed its UK boss was awarded a £6.4m pay package for 2018, amid a profits slump and plans for mass branch closures.

The high street lender’s annual report shows that chief executive Nathan Bostock’s annual salary last year was £1.68m.

In addition, he was paid a £2.3m annual bonus, with a further £638,000 in pensions and benefits.

His £4.6m total pay was then boosted by a further £1.8m in final compensation for the share bonuses he gave up when he left the Royal Bank of Scotland in 2013.

Mr Bostock quit as RBS group finance director to join Santander after just 10 weeks in the job.

The annual report showed that Mr Bostock’s pay package for 2018 came in below the £6.5m he was awarded in the previous year which included £4.7m in pay and bonuses, as well as £1.8m for the RBS share buy-outs.

Nathan Bostock quit as RBS group finance director to join Santander after just 10 weeks
Nathan Bostock quit as RBS group finance director to join Santander after just 10 weeks

The details of Mr Bostock’s latest annual pay emerge a month after Santander announced plans to shut 40 bank branches across the UK, putting more than 1,270 jobs at risk.

The UK chief’s salary and bonus were awarded despite Spanish-owned Santander reporting a 14% drop in underlying UK profits to £1.7bn for 2018.

Santander was also fined £32.8m by the Financial Conduct Authority in December, for “serious failings” while processing dead customers’ accounts.

The FCA found that Santander failed to transfer funds worth more than £183m to the beneficiaries of deceased account holders.

The banks also did not disclose information about the situation to the FCA when it first came to light.

A total of 40,428 customers were directly affected.

In the bank’s annual report, Santander’s remuneration committee chairwoman Annemarie Durbin said: “Our management team has delivered solid business performance this year, delivering for our shareholders, people, customers and communities.

“The continued progress made towards our strategic and operational goals (including the establishment of the ring-fence bank) was achieved despite the competitive and uncertain environment.”

Profits were dragged by higher regulatory costs, including those related to ring-fencing to keep personal and small business banking services separate.

Net interest income – a key measure for lenders – fell by 4% to £3.1bn, an indication of the pressure Santander UK faced with competition in the mortgage market.

Mortgage lending rose, but customer deposits fell to £142.1bn from £143.8bn due to a £3.5bn decline in savings balances.

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