£1m pay cut for City veteran Terry Smith

The City stalwart Terry Smith has felt the pinch from a “not particularly vintage year” as his pay and bonuses fell by almost £1m.

The chief executive of the interdealer broker Tullett Prebon took home a salary of £650,000 and bonuses worth £2.5m last year, in a total package worth £3.15m, compared with just over £4m in 2011.

The award reflects a tougher year for the company, which last month revealed its pre-tax profits were down 16 per cent to £115m on revenues 7 per cent lower at £851m. At the time, Mr Smith said market conditions were subdued, particularly in the second half of 2012, and even so far this year as equity markets have soared.

Tullett specialises in bringing together large institutional buyers and sellers of products ranging from foreign exchange and interest swaps to commodities such as oil and equity derivatives. It benefits when trading volumes are high and particularly at times of volatility.

Despite the reduced pay, Mr Smith, 59, picked up dividends worth £1.63m due to his 4.43 per cent stake in the company. Half of the bonus he receives each year is invested in shares.