UK-based retail lender TSB Bank is planning to offer £100 of shares to all its 8,600 employees, as part of its £1.5bn stock market flotation plan.
Additionally, the bank has put a cap on the pay package of its chief executive Paul Pester, who will now get up to £1.68m annually.
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After taking approval from Prudential Regulatory Authority and the EU, the lender has also decided to keep its staff bonuses relatively low compared to other UK banks.
TSB CEO Paul Pester said, "I believe a sense of shared ownership amongst TSB staff is key to delivering a consistently great customer service – and to building a thriving TSB Bank."
Lloyds Banking Group’s spin-off TSB said that it will change its present bonus structure with two new schemes after consultation with staff and trade unions.
Under the new plans, the bank will offer an annual performance bonus to all from management team to frontline branch employees, which will be limited to 10% of salary. However, it will be increased to 15% for better performers.
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By GlobalDataBy the end of June, Lloyds Banking Group, is considering to launch an initial-public-offering (IPO) of TSB, to divest 25% of its stake, to garner £1.5bn.
The divesture is also part of an agreement with the British government’s £20bn bailout package, which Lloyds received during the financial crisis of 2008.
