Live updates

Co-op Bank chief to get £2.9m pay package

Niall Booker says management "kept the bank alive" during its troubles. Credit: Reuters

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".

Advertisement

Co-op Bank loss 'reflects magnitude' of task ahead

The Co-operative Bank announced a £1.3bn loss for 2013. Credit: Tim Goode/EMPICS Entertainment

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."

Co-operative Bank announces £1.3bn loss

The Co-operative Bank is attempting to raise another £400m. Credit: John Stillwell /PA Wire

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.

Co-op Bank boss 'set for £3.6m pay deal'

The Co-operative Bank is reportedly set to hand its new chief executive a £3.6m pay deal Credit: Rui Vieira/PA Wire

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.

Advertisement

City regulator to open investigation into Co-op Bank

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 city regulator has launched an investigation into the Co-operative Bank. Credit: John Stillwell/PA Wire

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.

Former Co-op chief Peter Marks: Bank deal a 'tragedy'

Former Co-operative Group boss Peter Marks says it is a 'tragedy' that its banking arm is to fall into the hands of investors Credit: Bob Collier/PA Wire

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.

Load more updates