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Co-op Bank cancels vote on bonuses

The Co-operative Bank has cancelled a shareholder vote on executive bonuses saying the move to improve bonus schemes “may no longer be appropriate”.

The Times reports the Co-op has issued a statement to investors saying it did “not believe it is appropriate at this time” to ask shareholders to vote on improving long-term incentive plans for senior managers.

The meeting was due to be held next week.

It comes as the Co-op Bank is expected to fail stress tests carried out by the Prudential Regulation Authority.

The bank said: “As indicated in recent press queries about the outcome of the forthcoming PRA stress tests, which are still to be determined by the PRA, the bank is considering whether modifications to the timing and strategies for the run-down of non-core assets, which are particularly exposed to stress, would be appropriate.

“The board has therefore determined to cancel the meeting on 10 December with the result that it is highly unlikely that the processes required to establish a 2014 long-term incentive plan will be completed in the timeframe required.”

Co-op Bank chief executive Niall Booker was paid £1.7m last year. He was eligible for up to £2.9m this year, but this was based on a stronger financial position for the bank. He was also awarded a £1.2m long-term incentive plan that could have paid out next year.

A new bonus structure will be put to shareholders once the annual general meeting has been rescheduled.

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