Co-op boss Niall Booker said the bank still had "significant issues" and almost collapsed because of a £1.5bn hole in its balance sheet.Read the full story ›
Co-operative Bank chief executive Niall Booker is to receive a total £2.9 million pay package for the financial year 2013 and could receive a further £1.2 million dependent on the bank's future performance.
On the publishing of the results, Mr Booker said the new management had succeeded in keeping "the bank alive".
Co-operative Bank chief executive Niall Booker said today's belated 2013 annual results "reflect the magnitude of the issues that have come to light" since he took charge of the troubled bank ten months ago.
However, he said he said "initial progress on our business plan is encouraging and we remain enthusiastic about the long term potential for the Bank".
"The level of change required in improvement in processes, systems and culture is significant," he said.
"We are determined to rebuild trust in the Bank after the events of last year and reward the loyalty our customers and shareholders have shown us."
The Co-Operative Bank has announced it will not pay £5 million in deferred payments to former bosses following its £1.3 billion loss in the 2013 financial year.
The Co-operative Bank has reported an annual loss of £1.3 billion for the 2013 financial year.
The Co-op group was plunged into fresh difficulties on Thursday, offering members a vote on its future after the resignation of senior independent director Lord Myners.
The Co-operative is to hand a £3.6 million pay deal to its chief executive, according to reports - despite facing a £2 billion loss after the biggest crisis in its history.
According to the Observer, Euan Sutherland will receive a base salary of £1.5 million this year, plus a £1.5 million retention payment. He joined the company in May last year, having been chief operating officer of B&Q owner Kingfisher.
The mutual argues that Mr Sutherland's proposed remuneration package will be in line with comparable firms and reflects the scale of the task he faces, the paper says.
But the pay award would come at a time when the group is facing large-scale job cuts after a disastrous year in which its banking arm needed rescuing due to a £1.5 billion hole in its balance sheet.
The Co-operative Bank is set to be the subject of an investigation by the city regulator.
The probe will "consider the role of former senior managers" at the lender, which underwent a rescue last year after a £1.5 billion black hole was discovered in its finances, the Bank of England's Prudential Regulation Authority said.
The shortfall was widely attributed to problems arising for the takeover of the Britannia building society and the failed bid to acquire more than 600 branches from Lloyds.
Questions about the bank's management have also been raised following the alleged drug revelations surrounding former bank chairman Paul Flowers.
The Co-operative's former chief executive says it is a "tragedy" that the group has lost control of its banking arm.
Peter Marks appeared before MPs on the Treasury Select Committee, but refused to take the blame for the Co-operative Bank's demise.
Under plans to repair a £1.5 billion capital hole in its balance sheet, a deal has been struck to hand control of its banking arm to bondholders, including US hedge funds.
The member-owned group will be left with just 30% of the bank.
The Co-operative Group's long-standing chairman Len Wardle has announced he is standing down in May.
The Co-operative Group's long-standing chairman Len Wardle is standing down next year after it lost control of its banking arm to investors including US hedge funds.