Santander Ups Banker Bonus Pool Amid PPI Woes
High street bank Santander paid 19 staff more than £1m in 2012 and increased its bonus pool by 14%, despite another year of hefty provisions for mis-selling scandals.
The Spanish-owned group said UK boss Ana Botin was the highest-paid executive, receiving £4m in salary and bonuses, including a 24% rise in salary to £2.1m last year and a £1.8m cash-and-shares bonus.
The bonus pool reached a total of £150m for 2012.
In the latest disclosure on pay packages in the banking sector, Santander's annual report also showed recently promoted finance director Stephen Jones received £2.9m last year.
Mr Jones' pay included a £1.6m windfall relating to awards earned at his previous employer Barclays, paid as part of his package for joining in 2011.
Steve Pateman, head of UK banking, received £1.9m in total after a £100,000 pay rise on being promoted to the role last April.
Mr Pateman was also awarded a £1.1m bonus for 2012, some of which is deferred for three years.
Another top executive received £2.6m last year, while one other senior banker at the group landed £1.7m, according to Santander's annual report.
Santander's pay details come just a week after Barclays and Royal Bank of Scotland revealed that over 500 workers between them were paid more than £1m last year.
Taxpayer-backed RBS said it paid 95 staff more than £1m, while 428 employees at Barclays also picked up pay deals worth over £1m - including five who got more than £5m.
Earlier this month HSBC revealed 204 of its staff were paid more than £1m in the year, with 78 being based in the UK.
The disclosures have fuelled anger, coming after a year of scandal and further mis-selling revelations in the banking industry.
Santander put aside another £232m last year to cover costs such as compensation for mis-selling of interest rate swaps to small businesses, on top of £751m set aside in 2011 for payment protection insurance claims.
The group said it had uncovered a number of former Alliance & Leicester small business customers who had potentially been mis-sold swaps, although it was looking at less than 500 cases overall.
Santander - formed from the takeover of Abbey, Alliance & Leicester and part of Bradford & Bingley - also reported falling UK profits in 2012, down 2% to £1.23bn.
But the firm insisted bonuses were increased to reflect an improved performance from the UK arm last year, with after-tax profits up by 4% and net lending to small and medium sized businesses up 18% in 2012.
Santander said while Ms Botin's salary was increased last year, her bonus was reduced by 27% as it is also linked to performance at the wider Banco Santander group, which suffered a grim 2012 as profits plunged 59% after an 18.8bn euros (£16.2bn) hit on soured property loans in Spain.