Clydesdale Bank has paid its former chief executive David Thorburn more than £1.4 million for five months' work.

That was revealed as the bank’s annual report showed new boss David Duffy received £500,000 of shares as a golden hello and a bonus of £450,000 for the four months he was in the top job.

The document confirms Mr Thorburn, who left on February 28, received a full salary of £460,000 for the 12 months to September 30 even though he only worked part of the year.

Loading article content

It is understood his pro-rata pay would have been around £188,000 with the remainder given to him in lieu of notice.

The annual report notes a £952,000 payment under benefits and allowances which includes items such as cash payments in lieu of pension and compensation for loss of office.

Mr Thorburn was paid a total of £729,000 in the previous financial year made up of £450,000 salary, £99,000 benefits and allowances and £180,000 of bonuses.

The career banker had decided to stand down from the Clydesdale job after it became clear owners National Australia Bank planned a stock market flotation.

At the time he said: “Having been CEO for almost four years, I came to the view that it was in the best interests of the business for me to stand down at this time and allow an injection of new leadership to take place.

"I believe that the business requires a five-year commitment from me, particularly as NAB looks at options to accelerate the exit from its UK banking business and I felt this was a significant undertaking."

A spokesman said: “After service to the Group spanning over three decades, the last four of which were as CEO, David stepped down in February to allow for new leadership to take the Bank through the next stage of its development."

The annual report also shows Mr Duffy, who ran Allied Irish Banks before joining Clydesdale, received a salary of £318,000 and benefits worth £78,000. Adding in his share award and bonus he received a total of almost £1.35m in the financial year.

A spokesman said: "Appointed on June 5, the new CEO’s remuneration reflects his significant PLC experience and the scope and responsibility of his role with reference to the market. This is a key leadership role at a pivotal moment in building an independent future for what would become the largest of all the UK challenger banks."

Debbie Crosbie, who was interim chief executive between Mr Thorburn leaving and Mr Duffy arriving, received a salary of £367,000, a bonus of £450,000 and other benefits to the value of £119,000.

Chief financial officer Ian Smith, who joined from Deloitte and was appointed as an executive director in March, was paid a salary of £253,000, a bonus worth the same sum and benefits of £53,000.

John Hooper, who left Clydesdale in October last year, received a salary of £248,000 and allowances of £609,000.

Total executive pay was £5.1m compared to £1.6m in the prior year.

Chairman Jim Pettigrew was paid £300,000.

A spokesman for Clydesdale said: “Senior executive pay is market based and fully compliant with the regulatory code of conduct.”

Writing in the annual report Mr Duffy again highlighted his optimism over the future of the bank once the separation from NAB is complete.

He said: ”I am determined to build on the progress that we have made this year so that we can realise all of the opportunities that a standalone future offers.”

The annual report shows Clydesdale’s underlying profit before tax fell from £217m to £146m which it said was a result of increased marketing spend and reducing fees on customer accounts.