TSB boss Paul Pester is leaving the bank with a pay-off of almost £1.7million after a series of IT failures.
But the bank says the chief executive’s departure is by ‘mutual agreement’ and not linked to the system meltdowns that left 1.9million customers locked out of their accounts.
Mr Pester, who is on gardening leave, will get £1.2 million in severance pay and an ‘historical’ bonus of around £480,000 due from before TSB’s takeover by Spanish bank Sabadell in 2015. The bank said all other performance-related pay has been frozen while investigations continue into the IT botches.
In April a switch to Sabadell’s IT system left 1.9million customers unable to access their digital and mobile accounts. On Monday, TSB had to apologise again after more customers were shut out.
Interim chief executive Richard Meddings said Mr Pester agreed it was the ‘right time’ to step down after seven years. He said it had been planned for weeks and had nothing to do with Monday’s IT woes.
Mr Pester said it was a ‘privilege’ to lead the bank, but admitted the past few months have been ‘challenging for everyone at TSB’.
MPs on the Treasury Select Committee had called for him to be sacked. Chairwoman Nicky Morgan said ‘it is right’ he should step down.
Consumer group Which? said the change is an ‘opportunity for TSB to finally get to grips with the IT crisis that has affected millions’.
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