The boss of TSB Bank has seen her annual pay package drop by nearly a fifth while staff bonuses have almost halved after the lender suffered steep losses.
TSB’s annual report showed the bonus pool for a workforce of around 7,000 has been cut from £17.7 million last year to £10.5 million.
It confirmed it will slash bonuses to 3.9% of salary from 8.6% in 2019.
The report also revealed that chief executive Debbie Crosbie’s pay fell 19% to £1.17 million from £1.44 million in 2019, having waived any bonuses for 2020 amid the pandemic.
She joined TSB in May 2019 and was last year awarded £480,000 of shares as a so-called “golden hello” in lieu of bonuses she would have received in her former role as chief operating officer of CYBG, since renamed Virgin Money.
This was on top of a £184,925 bonus in 2019.
It is understood Ms Crosbie told staff internally about the bonus pool on Monday, shortly after it laid bare the toll of the pandemic on its performance in annual results.
The group also confirmed it will hand staff a 0.75% pay rise from April 1.
It handed frontline employees a £500 bonus last summer in recognition of their efforts amid the crisis.
While TSB’s bonuses have been cut substantially, some rivals have axed payouts entirely, with Lloyds Banking Group saying at the end of last year that all staff bonuses would be scrapped due to the pressure on profits.
TSB said: “2020 has been a challenging year for TSB resulting in a financial performance that was adverse to plan, primarily due to the consequences of the Covid-19 pandemic and the provision for estimated charges relating to the treatment of some customers in arrears.”
Details of the pay and bonuses come after TSB revealed on Monday that it slumped to a £204 million loss last year due to the pandemic.
It dived to the loss, from a £46 million pre-tax profit in 2019, after booking a £164 million impairment charge and seeing income tumble.
The group’s Spanish owner Sabadell is mulling a potential sale of TSB after buying the group for £1.7 billion in 2015.
Sabadell is looking at other options as part of a strategic review of TSB and is expected to make a decision by May.
TSB axed 93 branches last year as part of its continued transformation plan, with around 600 employees affected.
In September, the group announced plans to close another 164 branches this year, with around 900 staff set to be made redundant.