CLYDESDALE Bank chief executive David Thorburn has seen his remuneration tumble 38 per cent after receiving lower bonus payments.

The figures, revealed in the Clydesdale Bank plc annual report published yesterday, show Mr Thorburn's basic salary of £450,000 was unchanged in the 12 months to September 30.

Under the bank's short-term bonus scheme he received £135,000 in shares as well as £45,000 in cash.

Through its long-term scheme, which typically assesses a variety of metrics across four years, he got £226,000 worth of deferred awards.

On top of that his benefits for the year came to £99,000 meaning his total remuneration came in at £955,000.

That was still below the £1.54 million Mr Thorburn netted in the previous year when his bonuses came to just short of £1m.

The annual report shows John Hooper, Clydesdale's chief operating officer, but also executive director for National Australia Group Europe, received £663,000 in the most recent financial year.

That was down from the £1.65m he got in the prior year.

James Pettigrew, appointed chairman in August this year, received a fee of £119,000 compared to the £80,000 he got for being a non-executive.

It is not yet known whether there will be any increases in basic salary for executives in the current financial year.

The annual report also outlines the potential impact of changes to the volume of claims for payment protection insurance redress and what financial effect the number of upheld complaints will have.

If the average redress amount were to increase by 10 per cent Clydesdale has estimated that will have a £59m impact.

There would be a £50m movement if the number of existing complaints which are being reviewed were upheld by 10 per cent more while if the number of future complaints which are upheld rises by 10 per cent then that would cost £21m.

If the number of future complaints grows by 10 per cent more than expected Clydesdale indicated that would cost around £13m.

Conversely should the number of customers the bank is contacting as part of its review of PPI fall by 10 per cent it would see a benefit of around £24m.

In the annual report it said: "There are inter-dependencies between several of the key assumptions which add to the complexity of the judgements the group has to make. This means that no single factor is likely to move independently of others."

The annual report also lays out changes to the way the bank calculates the loans which are in forbearance to align it with European Banking Authority reporting standards.

As a result of the amendments the number of mortgage loans calculated as being in forbearance was 3,202 and those had a gross carrying value of £277m. The bank notes a £6.8m impairment allowance against those mortgages. In total there are 755 now categorised as being in forbearance, equivalent to nine per cent of the portfolio, and with a gross carrying value of £730m. Clydesdale has provided a £188m impairment allowance for those.

The bank said: "The revised policies and definitions include an extension to the minimum period after which loans can exit forborne status (to two years) , resulting in a number of loans which would have previously been deemed to have exited forbearance being brought into scope for disclosure."

Under the previous measurements the total number of loans in forbearance would have fallen from 423 to 403 although the impairment allowance increased from almost £68m to £90.5m. On mortgages the loan number decreased from 802 to 752 with impairments halving to £500,000.

Clydesdale owner National Australia Bank used its annual report, published on Monday, to reaffirm its commitment to exit UK banking.