The second-in-command at Standard Chartered stands to receive a pension worth almost £500,000 a year when he leaves the emerging markets-focused bank at the end of 2016.
The departure of Mike Rees, the deputy chief executive and one of the highest paid bankers at Standard Chartered, was announced last week. He is the last remaining high-profile member of the previous management team, which has unravelled since Peter Sands, the chief executive who led the bank through the financial crisis, resigned last February.
Rees could also receive a bonus payout worth £2.7m at current share prices, and will be paid $2.5m (£1.7m) in salary and allowances for the rest of the year.
The payouts following calculations by Bloomberg that Rees had been paid $72m in the six years since the financial crisis.
Rees had his management responsibilities reduced by Bill Winters, the new chief executive of the bank, in a management overhaul in July. Rees kept the title of deputy chief executive but no longer had the bank’s three main divisions reporting to him.
He is the last of the senior team who helped oversee a rapid increase in profits at the bank until 2013, when Standard Chartered had to admit the period of growth that helped it to stand out during the financial crisis was coming to an end.
Rees – who turns 60 next month when his pension accruals will come to an end – will step down as deputy chief executive at the end of April. However, he will remain until the end of year to help the management with “a comprehensive programme of actions relating to the group’s new strategy”. He has been at Standard Chartered for 26 years.
The bank also pledged that the chairman Sir John Peace would go in 2016 once Winters, who used to work JP Morgan, had settled into the role.
The bank has decided that Rees can be regarded as a good leaver, allowing him to keep any unexercised share awards that can pay out over the coming years. He has 202,000 shares which are not subject to any performance criteria and 344,000 whose payout is dependent on performance. If they were all to be paid out in full at current share prices they would be worth more £2.7m.
The shares fell almost 40% last year. At the end of the year, Winters raised £3.3bn from Standard Charter investors and said 15,000 jobs needed to be axed as it attempts to revitalise its performance and pull out of risker trading activities.
When he announced the cash call in November, Winters told City analysts there were some good aspects to Standard Chartered but they were buried under “fertiliser”.
This article was written by Jill Treanor, for theguardian.com on Sunday 10th January 2016 16.49 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010