Banks - Director's Pay

1 April 2005


 In its latest report on UK Current Accounts, Ethical Consumer magazine has compiled a league table of the highest paid bank directors.

 The worst offender by far was Citigroup Inc (the parent company of Citibank), with one of its directors enjoying remuneration totalling £17,097,759 in 2003.[2] The fourth-worst offender was HSBC, with its highest paid director receiving £2,182,000.[3] This year, HSBC announced a 37% rise in profits, whilst 50% of its staff were facing zero or below inflation pay rises. Currently, new starters at HSBC can expect to earn only 28p more than the minimum wage. Union Amicus has been preparing members to strike over this inequitable profit share, reflecting rock-bottom morale amongst the workforce.[4]




Highest directors’ pay (year)

Citigroup inc

£17,097,759 (2003)[2]

National Australia Bank Ltd

£3,100,000 (2004)[5]

Barclays plc

£3,088,000 (2003)[6]

HSBC Holdings plc

£2,182,000 (2004)[3]

Royal Bank of Scotland

£1,916,000 (2003)[3]

Abbey National plc

£1,688,000 (2003)[3]

Alliance & Leicester plc

£1,488,000 (2002)[7]

Nationwide Building Society

£1,435,000 (2003)[8]

Lloyds TSB Group plc

£1,140,000 (2003)[9]

Bank of Ireland

£1,100,000 (2004)[10]

HBOS plc

£1,072,000 (2003)[11]

Co-op Financial Services

£1,054,000 (2002)[12]


The report’s author, Jenny Edwards, says: “Banks have also attracted criticism for offering financial services to companies engaged in unethical activities. Such companies might be involved in weapons manufacture, tobacco or pornographic magazines.” Ethical Consumer looked at which banks the FTSE 100 companies banked with and included this within each bank’s “Ethiscore”.


Other issues examined in the report include a comprehensive review of lending policies, a look at tax havens and an examination of different global initiatives for managing social and environmental issues.



[1] Report on the impact of the Directors’ Remuneration Report Regulations. Deloitte, November 2004.
[2] Citigroup Proxy Statement 2004
[3] Figure relates to the financial year 2004. From Labour Research 08/04.
[4] 07/03/05
[5] National Australia Bank Ltd Annual Report 2004
[6] Barclays plc Annual Report 2003
[7] Labour Research 01/02
[8] Nationwide Building Society Annual Report 2003
[9] Lloyds TSB Group Annual Report 2003
[10] Bank of Ireland Annual Report 2004
[11] HBOS plc Annual Report 2003
[12] Co-operative Financial Services Annual Report 2003

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