Metro Bank boss handed record £2.6m after slashing 1,000 jobs

Metro Bank CEO awarded record £2.6 million pay package following a year of deep job cuts and a dramatic financial rescue. | Contesto: cronaca

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• Metro Bank boss handed record £2.6m after slashing 1,000 jobs

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Dan Frumkin, the chief executive of Metro Bank, has been awarded a £2.6 million pay package, the largest in the bank's history, just one year after overseeing the elimination of 1,000 jobs in a drastic effort to stabilize the lender following its near collapse. The compensation, which more than doubles Frumkin's £1.2 million pay from the previous year, was approved by shareholders at a meeting last year and includes a complex new bonus scheme. The substantial payout comes after a period of extreme turbulence for the bank, which required a high-profile rescue to avert failure. The bank's decision to grant its top executive a record payday stands in stark contrast to the severe cost-cutting measures imposed on its workforce. The elimination of 1,000 positions was a central pillar of a survival plan implemented after Metro Bank teetered on the brink of insolvency. The job cuts, representing a significant portion of its staff, were part of a broader restructuring aimed at reducing expenses and securing the bank's future, making the timing of the executive pay award particularly contentious. Metro Bank's recent history has been defined by crisis. The lender, known for its distinctive retail presence and customer service model, faced a severe capital shortfall that triggered a loss of investor confidence and a precipitous drop in its share price. The situation culminated in a last-minute rescue deal spearheaded by Colombian billionaire Jaime Gilinski Bacal, who led a £925 million capital injection and debt refinancing package in late 2023. This bailout secured the bank's immediate survival but came with stringent conditions, including deep operational cuts. Frumkin, a veteran banker with prior experience at institutions like RBS and Northern Rock—both of which faced their own historic crises—was tasked with steering Metro Bank through this perilous recovery. The board's rationale for the substantial pay increase likely hinges on his role in navigating the rescue, securing the vital funding, and implementing the painful restructuring. However, the optics of a multi-million pound reward following mass layoffs present a significant public relations challenge and raise...

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Categoria: cronaca