Clydesdale Bank boss David Thorburn saw his annual pay package more than treble to £1.54million this year, from £510,000 previously, despite the group suffering a sharp fall in its underlying profits.
However, he was not the top earner at the Clydesdale during the year to September 30.
Chief operating officer John Hooper received emoluments totalling £1.65million, up from £918,000 the year before.
The figures are revealed in the latest annual report for Clydesdale Bank plc, which operates under the Clydesdale Bank and Yorkshire Bank brands.
Mr Thorburn, Clydesdale’s chief executive since July 2011, and Mr Hooper saw their annual rewards rocket despite underlying profits from the UK operations of owner National Australia Bank (NAB) plunging by more than 36% to £285million.
Hefty cost-cutting, including 1,400 job losses, and fewer bad debts helped pre-tax cash earnings back into the black – a total of £127million, compared with losses of £183million in the previous 12 months.
The banking business alone – Clydesdale Bank plc – narrowed pre-tax losses in the latest period to £33million, from £614million previously.
A spokesman for the group yesterday said the latest pay awards to Mr Thorburn and Mr Hooper were inflated by two years-worth of long-term incentive scheme allocations.
Mr Thorburn’s total included salary and fees totalling £450,000, up from £400,000 in 2011/12, while Mr Hooper’s figure was down by £112,000 at £591,000.
Short-term incentive scheme payments in cash and shares to Mr Thorburn and Mr Hooper in the latest period were worth a total of £316,000 and £281,000 respectively, against nothing for either men the year before.
Most of the remainder of their latest pay packages comprised other benefits and allowances, such as cash payments in lieu of pension contributions.
Clydesdale’s spokesman said bonuses for all employees were strictly tied to business performance and had effectively been reduced by 130% over the past two years.
He added: “No annual bonuses were awarded in the previous financial year (2011/12).
“While the significant improvements achieved in the past year have been recognised by the NAB group board’s remuneration committee, performance bonus levels for employees have also been reduced by a further 30% this year.”
The swingeing job cuts were part of an 18-month restructuring programme and have left the UK banks with about 7,000 full-time workers.
Clydesdale and Yorkshire have shut a string of business and private-banking centres – offering services to local firms and wealthy investors – and relocated others, including one in Aberdeen, to retail branches. The banks have also axed a financial advice service which operated through their business and private-banking arm.
In addition, there have been some retail branch closures, affecting sites in Huntly and Aberdeen.