LONDON, June 5 (Reuters) - New British bank TSB Bank Plc will award all staff 100 pounds ($170) of shares as part of its flotation, which they will need to keep to get a bonus under a new pay plan based on retailer John Lewis's partnership model.
TSB, which is owned by state-backed Lloyds Banking Group and is due to list later this month, said on Thursday its Chief Executive Paul Pester could earn up to 1.7 million pounds under the scheme, less than the maximum he could currently get.
TSB is trying to set itself apart from the big UK banks, which are regularly under fire for the scale of bonuses for executives and top bankers.
It said bonuses would be less than salaries, so it would comply with a 100 percent cap set by European regulators.
TSB said it had borrowed from the pay structure of John Lewis, and the bank's 8,600 staff would get 100 pounds of TSB shares at its initial public offering (IPO) and become "TSB Partners", with the long-term ownership of these shares required for staff to be eligible for performance-related rewards.
The bank said Pester's fixed pay, comprising a 700,000 salary that is fixed until 2016 and pension and other benefits, was 877,500 pounds, which can be topped up with a bonus of up to 805,000 pounds. It said that marked "a material reduction" in his maximum potential earnings.
($1 = 0.5969 British Pounds)
(Reporting by Steve Slater; Editing by Mark Potter)
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Keywords: BANKING TSB/SALARY
