Yahoo Finance Metro Bank founder handed half a million as share price collapsed
The founder of embattled Metro Bank (MTRO.L) earned half a million pounds in fees and benefits last year, as the company’s share price collapsed amid a loan miscalculation crisis.
Accounts published on Monday show that Vernon Hill II earned £385,000 ($481,430) in fees from Metro Bank in 2019 and received taxable benefits worth £115,455, including a monthly travel and accommodation allowance.
American Hill founded Metro Bank in 2010 and served as chairman until last year. He left after a disastrous year for the bank, resigning as chairman and quitting the board in December.
Read more: Metro Bank founder to quit as chair after loan fiasco
Metro Bank admitted in January 2019 it had misclassified some loans, which were riskier than first thought. The mistake forced the bank to set aside extra cash to cover potential losses and ask investors for £375m to bolster funds.
The fiasco prompted some customers to withdraw money and pushed Metro Bank to a £130m loss for the year. Shares in the bank have fallen over 90% since the loan issue was announced.
Blue chip investors Legal & General last year led a campaign to oust Hill from the company over the crisis.
Hill’s total earnings for 2019 were roughly the same as in 2018 despite the loan fiasco. His remuneration was more than double that of the second highest paid director, who took home £130,798.
Hill’s total earnings have faced scrutiny in the past, particularly his generous travel allowance. Last year the bank faced an investor rebellion over its pay proposals.
Metro Bank said in its accounts it had carried out “a detailed review of our approach to executive pay” following the rebellion. The remuneration committee said they would “continue to engage with investors and stakeholders” on pay.
The bank’s annual accounts show former chief executive Craig Donaldson earned £828,565 last year, a 3.5% rise on 2018. Donaldson, who left the bank in January, did not earn any bonus.
