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Change at top of bank

Departing TSB boss Pester gets bonus despite IT failures

TSB

Problems continue to hit the bank (pic: Terry Murden)


 

TSB chief executive Paul Pester will still be entitled to payments and bonuses of nearly £1.7 million despite stepping down in the wake of the IT failures which left thousands of customers unable to access their accounts.

He will get a £1.2m severance payment and a bonus of up to £480,000 that was agreed prior to TSB’s takeover by Spanish bank Sabadell in 2015.

Richard Meddings, who becomes interim executive chairman, conceded the IT problems were yet to be fully resolved.

He said: “Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration.

Pester, who was chief executive for seven years and earned £1.8m a year, said: “The last few months have been challenging for everyone at TSB. However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.”

Pester had resisted previous pressure to quit after MPs said the bank’s board should give “serious consideration as to whether his position was sustainable.”

Almost two million customers using TSB’s digital and mobile banking found themselves locked out of their bank accounts earlier this year.

It followed a botched attempt to migrate customer data from former owner Lloyds’ IT system to a new one managed by TSB’s current owner Sabadell in April.

Despite assurances from Mr Pester that the bank was on top of the problem issues continued and hit the bank again only yesterday.

In the the first six months of the crisis 26,000 customers left the bank, but 20,000 joined.

 



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