LONDON (Reuters) - Standard Chartered (STAN.L) Chief Executive Bill Winters saw his 2017 pay package bumped up 38 percent to 4.68 million pounds ($6.53 million) on Tuesday, as the bank reported a surge in full-year profit and resumed paying dividends.
The bank also increased its overall bonus pool by 10 percent to $1.15 billion in 2017, when it made its way back toward normal profitability after two years of restructuring and dealing with bad loans in some of its main markets.
The pay package for Winters, the former JPMorgan (JPM.N) banker who has helped StanChart swing back into the black since his arrival in 2015, included a 1.15 million pound salary, 1.15 million pounds in fixed pay allowances and 1.68 million pounds in annual incentives for 2017.
This compared to a total package of 3.39 million pounds in 2016, when Winters was still implementing the restructuring plan which saw him axe 15,000 jobs and entire business lines.
In 2017 the bank’s pre-tax profit stood at $2.4 billion, compared to $409 million in 2016. Losses on loans were down to $1.36 billion, from over $4 billion when Winters arrived.
Chair of the bank’s remuneration committee Christine Hodgson said group-wide pay increase reflected the bank’s improved financial performance and progress against its strategic objectives.
Across the bank, 139 people earned more than 1 million euros ($1.23 million), the bank disclosed in complying with European rules, with the highest earners raking in between 5 million and 9 million euros.
Shareholders in recent years have criticized the bank for keeping staff pay levels flat or even increasing them, while slashing dividend payouts as the bank’s losses on bad loans mounted and profits fell.
Winters defended an increase to the bonus pool of 5 percent last year even as the bank canceled its dividend and the rest of the banking industry cut bonuses back due to underwhelming results.
The bank reported a gender pay gap of 30 percent in Britain, meaning it on average paid women 30 percent less per hour than men due to lower levels of women in senior roles at the bank.
Reporting by Emma Rumney and Lawrence White; Editing by Muralikumar Anantharaman