The Co-operative Bank recently announced losses of £2.5 billion for 2013. It also announced that it would not be paying out bonuses to former executives adding up to £5 million.
Last year a £1.5 billion hole was discovered in the bank’s finances causing it to nearly collapse. Due to this, the employer is being forced to cancel outstanding deferred bonuses for executives that left the bank. This news was released at the same time as the bank’s apology was issued to its customers after revealing it did not expect to make a profit this year or next.
The Co-op Bank recently came under fire after news of payoffs and reward packages for the whole leadership team was released.
Pay details for the bank’s chief executive were also published that revealed he would collect a remuneration package totalling £2.9 million. He could also receive a three-year incentive scheme based on future business performance.
Many who oppose these types of payouts are calling the row over remuneration levels “rewards for failure”.
The bank separated from its parent company at the end of last year and was acquired by a group of US hedge funds.