Two City high-fliers take pay cuts for Lloyds and RBS sell-off roles

 

Nick Goodway
Monday 16 September 2013 14:47
Comments

Two of the City's best-known dealmakers are to oversee the sale of its stakes in Lloyds Banking Group and Royal Bank of Scotland.

Credit Suisse's UK chief executive James Leigh-Pemberton will join UKFI, the body which holds the taxpayer's bank stakes, in October and become executive chairman at the start of next year.

He will be joined by BoA Merrill Lynch's UK head of equity capital markets, Oliver Holbourn, in a new role as head of capital markets at UKFI. Both are set to take massive pay cuts, dropping from their million pound-plus investment banker levels to £180,000 and £170,000 basic pay, respectively.

Leigh-Pemberton, the son of former Bank of England Governor Robin Leigh-Pemberton and a veteran of 20 years at Credit Suisse, said he would not be taking any kind of bonus or pension contribution. UKFI chairman Robin Budenberg, who led the search for a new chief executive when Jim O'Neill said he was leaving last April, said Leigh Pemberton was "literally, uniquely well qualified for this role".

Leigh-Pemberton, 56, has been involved in deals and fundraisings worth billions of pounds, ranging from the £2 billion flotation of Carphone Warehouse in 2000, through the privatisation of steelmaker Corus and its takeover by Tata, to the current £6 billion rights issue by Barclays. The start of the sale of the 39 per cent stake in Lloyds is likely to start before Leigh-Pemberton joins, with a 10 per cent stake expected to be placed with institutions in weeks if not days.

Over the next four or five years his task will be to sell the rest of that and the 81 per cent stake in RBS - which together cost the taxpayer £45 billion - at a profit.

Commenting on Leigh-Pemberton's move, Budenberg said: "There are very few things which James and I are qualified to do which have a broader value."

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in