ANDY HORNBY, the head of HBOS's retail banking arm, will receive shares worth up to £3.25m under a special "golden handcuffs" bonus scheme designed to stop him from joining retial chain Boots, reports The Times.
The paper says the bank has confirmed Hornby, will receive 260,000 shares in April, after beating targets aimed at lifting profits in the unit by 60% or more over three years.
Hornby, who is seen as a potential successor to James Crosby, the bank’s chief executive, will receive a further 130,000 shares under the retention package if he promises to hold on to the stock until 2008.
The package comes at the end of a good year for the bank that has seen several senior executives, including Hornby, scoop additional bonuses under a one-off short-term incentive scheme started in 2004.
The Times also reports that HBOS’s chief executive saw his total remuneration jump 38% to £1.4m, including a basic salary of £808,000 and a one-off bonus of £534,000. The bank has also boosted the transfer value of Crosby’s pension by £1.6m to £7.4m.
In total, HBOS has paid out just over £2.5m to seven key directors under the one-off bonus plan. The incentive was specifically structured to allow executives to receive up to 90% of their basic pay as a bonus.
Earlier this month, HBOS reported record profits of £4.5bn for the year, a 22% rise on last time.
Mark Tucker, the former finance director who is to become chief executive of Prudential, pocketed £744,000 in the year, including £375,000 in basic pay and a bonus of £362,000. Tucker is due to replace Jonathan Bloomer in May.
ACCORDING TO the Financial TimesJapan’s Mizuho Bank, which has been plagued by IT system problems since its launch in 2002, says it has lost confidential account data on 270,000 customers.
The retail banking arm of Japan’s biggest lender, Mizuho Financial Group, says data including customers’ names, account numbers and transaction histories had been lost at 167 branches over a span of several years.
The FT says an internal investigation has uncovered no evidence that the data has been leaked to outsiders or misused.
In a statement the bank says: “There is a high probability that the information was accidentally disposed of, and it is extremely unlikely that it was passed to outside parties.”
ALSO IN the FT Phil Purcell, chairman and chief executive of Morgan Stanley, has hit back at critics following the departure of two top executives yesterday and renewed calls for his departure.
Purcell has denied there is any widespread lack of confidence in his leadership and defended a management shake-up designed to promote executives who "really were the future of the company".
AND FINALLY, in the FT Man Group, the brokerage and hedge fund manager, has claimed sales have remained strong in 2004, despite poor returns indicated in some markets, adding the firm intends to report pre-tax profits at least in line with expectations.
The world’s largest listed hedge fund manager, says in a pre-close statement that sales for the year to 31 March 2005 are expected to be $11.9bn, split almost equally between private clients and institutions.IFAonline
Industry compensation scheme refuses to cover it
No-deal Brexit will cause 'a tremendous shock on the UK economy'
‘If our people are the best they can be, then so is our service’
Asset managers must make changes
Follows exit of Hamish Purdey