Bradford & Bingley announces bonus scheme

Bradford & Bingley has revealed plans to reward around 800 junior staff bonus payment of just under 8% of their salary, at a cost of £1.7m.

The average salary for this group is approximately £22,000 and rewards are based on personal performance and customer service measurement.

Senior and middle managers will receive no immediate payment, although a pool of £1.3m earned under the various scheme rules will be allocated on a deferred basis in order to help retain key staff during the run down of the Bradford & Bingley mortgage business.

These payments will be made at the discretion of the remuneration committee. They will be in the form of loan notes and be subject to up to 100% clawback.

Details of this retention mechanism are still being worked on.

Richard Pym, chairman of Bradford & Bingley, says: “It is essential to maintain the commitment and retention of colleagues who bear none of the responsibility for the events of last year, and whose efforts in continuing to serve our 300,000 customers are recognised by high customer satisfaction scores.”