Metro Bank today announces that Craig Donaldson, who has been Metro Bank’s Chief Executive Officer (CEO) since 2009, has agreed with the Board that he will step down at the end of the year, having led the Bank through what has been a challenging period. Craig will remain available to the Board as an advisor until the end of 2020.
Dan Frumkin, who joined Metro Bank in September 2019 as Chief Transformation Officer, has been appointed to the Board as Interim CEO from 1 January 2020, subject to regulatory approval. The Board will commence a process to search for a new CEO, which will consider both internal and external candidates.
Sir Michael Snyder, Chairman said: “On behalf of the Board and all our colleagues, I want to thank Craig for his steadfast leadership of the Bank over the past 10 years. Thanks to his passion and commitment, today Metro Bank serves nearly two million customer accounts and is rated no.1 for personal current account service. My priority is to appoint a permanent CEO and to appoint new NEDs to the Board who will bring even more retail banking experience. I look forward to steering the Bank as we define and start to deliver the next chapter.”
Craig Donaldson commented: “I am proud of Metro Bank’s achievements during the past decade. From a standing start, we brought something very different to banking for customers and colleagues. While this has undoubtedly been a challenging year, it has been a privilege to serve. I committed to work with the Board until we felt that the Bank was sufficiently strong for me to step away. This has been achieved and as Metro Bank looks to the future, we have reached that point where I am confident that the Board and the many dedicated teams within Metro Bank will enable this Bank to prosper again.”
Dan Frumkin added: “This is a business 100 per cent committed to doing the very best for its customers, powered by passionate and driven colleagues determined to deliver exceptional service. We are working hard to evaluate the Bank’s future plans and we will be in a position to update the market in February.”
Craig will be treated in accordance with Metro Bank’s approved remuneration policy:
- During his 12 month notice period, Craig will receive his salary, pension and non-cash benefits.
- Craig elected not to receive any variable reward for 2018.
- Craig will not receive any variable reward for 2019 and 2020. No further options or awards will be granted.
- Craig’s unvested options and awards (which relate to years prior to 2018) will be considered by the Remuneration Committee in due course. They are currently frozen as disclosed in Metro Bank’s last annual report.
Full details will be disclosed on the Metro Bank website in due course in compliance with Section 430(2B) of the Companies Act 2006 and in the Directors' Remuneration Report within the Company's Annual Report and Accounts for the year ended 31 December 2019, and subsequent years, as appropriate.
Dan will be paid in accordance with Metro Bank’s approved remuneration policy:
- His salary for the interim role will be £690,000 and he will be eligible for total variable reward opportunity in the range of 0% to 200% of salary.
- No variable reward is expected to be paid for the 2019 performance year.
- As agreed at the time Dan was appointed as CTO, he will be granted options over 100,000 shares in 2020 with an exercise price equal to the market value of the Metro Bank shares on the date of grant (such that the options have no value on the date of grant).
Dan, 55, most recently spent eight years at The Bank of N.T. Butterfield & Son Limited, a full-service community bank based in Bermuda, as their Global Chief Operating Officer and prior to that as Global Chief Risk Officer. He has previously held roles at RBS and Northern Rock.
The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 and was authorised for release by David Arden, Chief Financial Officer.