Financial News: The Average Bonus At UKFI Last Year GBP16,500

26th Jul 2010 14:04

By Liam Vaughan Of FINANCIAL NEWS Staff at U.K. Financial Investments, the body managing government stakes in the banking sector, picked up average bonuses of GBP16,500 each last year. This marks the first time the body has paid out bonuses since it was set-up at the end of 2008. According to UKFI's annual report, a total of GBP198,000 was awarded for the period of Nov. 3, 2008, to Nov. 30, 2009, of which GBP75,000 has been paid out and GBP123,000 retained because UKFI bonuses are deferred over three years and subject to clawback. The total award represents 11.8% of staff costs incurred over the period. Average headcount over the 2009-2010 period was 12 excluding non-executive directors, and 18 including non-executive directors. At March 31 2010, the number of full-time employees including the chief executive had risen to 16. "This figure reflects the intensity of our activities during the recapitalisation phase of the bank crisis and the necessity of hiring staff with specific commercial expertise, and will be lower in future years," UKFI said. The total wage bill for UKFI executive and non-executive staff, including wages, salaries paid or payable, social security costs, and other pension costs was £1.96m for the period April 1 2009 to March 31 2010. UKFI staff took an average of 2.5 days of sickness absence. Separately, UKFI's board of directors agreed to take a pay cut of 5% for 2010 "in response to the Government's commitment to cutting the cost of the public sector." UKFI manages the Government's stakes in Royal Bank of Scotland (RBS), Lloyds Banking Group (LYG), Northern Rock and Bradford & Bingley. In the 12 months to March 31, Lloyds Banking Group's share price rose 79% from 35.1 pence to 62.8 pence, while RBS rose 80% from 24.5 pence to 44 pence. Northern Rock and Bradford & Bingley are no longer listed. On the prospects for selling down the stakes, chairman David Cooksey said: "Given the need to respond to financial conditions, we have no pre-defined timetable for the exit programme. Nor have we ruled out any options for sale, and will continue to explore a range of possible alternatives, including public offers for sale. To be ready to capitalise on opportunities as they emerge, we have made progress in preparations to ensure efficient transactions, including the pre-qualification of appropriate investment banking advisers." Web site: www.efinancialnews.com (END) Dow Jones Newswires July 26, 2010 09:04 ET (13:04 GMT)