How bank FDs measure up in the bonus stakes

Chris Lucas, Barclays
Finance director since 1 April 2007 having previously been a partner at
PricewaterhouseCoopers.

Pay in 2007
Salary of £450,000, benefits worth £135,000 (includes payment in compensation
for not joining group pension scheme), annual cash bonus of £450,000. Figures
represent earnings in the nine months he was on the board in 2007. Base salary
is £600,000.

Annual performance bonus and Executive Share Award Scheme

Was awarded 69,091 shares in 2007 under the ESAS one month after joining
Barclays, in recognition of forfeited compensation from previous employment.

The 2007 annual report said that, including the maximum 30% bonus, a share
award worth £195,000 was to be made to Lucas in March 2008.

Performance Share Plan
Initially awarded 82,910 shares worth £599,000 under the PSP with a possible
further 248,730 shares (£1.8m), but release to him is subject to performance
criteria over 2007-2009.

Other
Has a further 3,638 share options under Sharesave, exercisable at £4.83
(£16,800).
In addition, has a beneficial interest in 38,003 shares.

Look for
Base salary rose to £650,000 in April 2008. Executive directors will be victims
of the bonus backlash. Recent results statement said: “Executive directors will
receive no bonuses for 2008. For 2009 and beyond, we are reviewing our
compensation policies and practices.” Notional value of all shares and options
owned at end-2007 will have fallen sharply. Economic profit decline of 23% will
affect PSP award which, from 2009 onwards, is 50% calculated with reference to
total shareholder returns.
Share price today 98p

———-

Mike Ellis, HBOS (now part of Lloyds Banking Group)
Rejoined HBOS as FD in September 2007 having been FD between 2001 and 2004.

Pay in 2007
Salary £169,000, benefits £45,000 (includes £42,000 allowance in lieu of
pension), cash bonus £78,000. Ellis also receives a pension from his previous
employment by HBOS. Joined on a base salary of £630,000 pa.

Long-term Incentive Plan
Granted 20,114 shares in 2007; 25,972 shares from 2004 scheme were released
during the year.
Other: Had a beneficial interest in 350,545 shares.

Look for
HBOS’s acquisition by Lloyds TSB to form Lloyds Banking Group completed January
2009. The Guardian estimates that Ellis left the group with £850,000, including
share performance schemes.
Share price today HBOS converted into Lloyds shares at a ratio
of 0.605 Lloyds shares per HBOS share. Lloyds share price 55p.

———-

Tim Tookey, Lloyds Banking Group
Became deputy FD in 2006 and acting group FD in April 2008, succeeding Helen
Weir, who is now executive director, retail. Appointed to the board in 2008, so
no salary details available yet. Weir earned £575,000 in basic salary, £40,000
in benefits, £115,000 payment in lieu of pension, and £891,000 bonus in 2007,
with long-term incentive plan payment worth £725,000.

Look for
Board announced that executive directors agreed to forego bonuses “of their own
accord”
Share price today 55p

———-

Douglas Flint CBE, HSBC
Joined HSBC in 1995 having been a partner at KPMG

Pay in 2007
Salary of £679,000, pensions allowance £374,000, benefits 325,000, performance
bonus of £800,000. Total £1,878,000.

Performance shares
Flint was awarded 246,185 shares under the long-term incentive plan with a face
value of £2.2m, but an expected value of £968,000. Vesting of performance shares
depends 50% on total shareholder returns compared with 28 major banks (including
Lloyds TSB and RBS), measured over three years: A ‘top 7’ ranking = 100% award,
ranking 14th = 30% award, below that: nil. Balance of performance shares depends
on earnings per share growth over three years.

Other
Beneficial owner of 83,467 shares and trustee over 29,314.

Look for
Base salary remained at £700,000. Bonuses in 2008 to be determined by a balanced
scorecard, combining financial and non-financial measures. HSBC’s performance
against peers should result in allocation of performance shares, but the
performance share plan was changed in 2008. Up to 185,821 shares may have
vested.
Share price today £5.05

———-

Guy Whittaker, RBS
Became FD in February 2006 after 25 years with Citigroup.

Pay in 2007
Salary of £760,000, performance bonus worth £1,425,000 (includes
profit-sharing), pension allowance £262,000, benefits £3,000.

Share options
Granted 280,749 options in 2007 at an exercise price of £5.61. Holds a total of
454,539 share options.

Medium-term performance plan
Had an interest in 113,391 shares at the start of 2007 and was awarded a further
107,298 shares in the year (then worth £750,000 and £700,000 respectively).

Restricted stock award
Awarded in lieu of unvested stock award from previous employer. Held 373,533
shares at the start of 2007 worth £2.4m of which 168,855 shares worth £1.1m
vested during the year. A further 91,449 shares vested during 2008.

Other
Beneficial owner of 278,191 shares worth £1.2m at end-December.
Look for No annual cash bonuses. Improbable that performance targets for
medium-term performance plan could possibly have been met. Sharp decline in
value of vesting shares, value of shares beneficially owned, share options below
water.
Share price today 19p