Clydesdale chief's bonus drop

THE head of Clydesdale Bank and Yorkshire Bank, Lynne Peacock, volunteered to take a lower bonus this year despite a strong performance from the business.

Peacock elected for her short term incentive bonus to be based on the UK bonus structure rather than that for the group as a whole, which would have resulted in a higher payout. A spokesman said the decision was in light of current economic conditions in the UK.

Peacock, who became chief executive in 2004, received a 440,000 basic salary in the year to 30 September - up by 4,000 on the previous year - and together with bonuses and allowances her total package was 1.51 million, down from 1.66m.

Chief operating officer David Thorburn received a total package of 1.03m, up from 684,000. Executive director John Hooper received 1.55m, up from 678,000 for the part of 2009 he served.

Total executive pay rose to 4.7m from 3.3m.

Chairman Sir Malcolm Williamson received 161,000 in fees, which was down from 190,000.

During the year the UK operations of National Australia Bank, not including NAB's wholesale banking operations in the UK, saw a 53 per cent jump in annual profits with retail deposits increasing 11 per cent to 23 billion, double the industry average growth.

Group profits rose to 164m in the year to end-September from 107m the previous year.

Clydesdale - Scotland's third biggest bannk - and Yorkshire together advanced 4.7bn of credit in the year, including 2.7bn of business lending and 1.7bn of mortgage advances.

It said it remained on track to deliver the 10bn of lending over two years it promised last October.

Clydesdale Bank's portfolio of liquid assets also rose to 10.1bn last year from 8.7bn - a four-fold increase in just three years.