Clydesdale Bank boss pulls in £1.3m salary

The newboss of Clydesdale Bank was paid more than £1.3million in his first four months in the job, as the lender readies itself to become independent for the first time since 1920.

Former Allied Irish Bank executive David Duffy was recruited in June to lead the demerger and flotation of the Clydesdale and Yorkshire bank from its owner, National Australia Bank (NAB), which is expected to take place in February.

A spokesman for the bank said Mr Duffy’s pay package reflected his “significant PLC experience” and the “scope and responsibility of his role”.

Mr Duffy’s remuneration included a £ 500,000 “golden hello” commencement award, to be paid in shares over a three year period.

The remuneration figures were published in the bank’s annual accounts, which also showed underlying profits had slipped 32.6% to £146million to the year ended 30 September 2015. Overall the bank made a statutory loss of £308million for the year as a result of payments for mis- selling redress, restructuring expenses and investment in the business.

NABhas had to coughup a £1.7billion capital support package to ensure the new, separate bank can meet “potential future legacyconduct costs”– arequirement by the banking watchdog, the Prudential Regulation Authority (PRA).

Mr Duffy said the bank has showed progress as it moved towards becoming the “largest of all UK challenger banks” next year.