Fury over huge pay-off to former building society chief

Jul 17 2009 by Graeme Brown, Birmingham Mail

THE West Bromwich Building Society has come under fire today after it emerged a former chief executive received a £520,600 pay-off last year.

Stephen Karle, aged 50, quit suddenly last October, leaving the 160-year-old mutual on the brink of collapse and nursing multi-million pound losses after stacking up bad debts.

His bumper leaving package was on top of 10 months’ pay and benefits of £166,000 – a total of £686,600 – the society’s annual report and accounts showed.

Gerard Coyne, West Midlands regional secretary for union Unite, said the pay-outs for executives at banks should be cut back. He added: “The bonuses that are being paid to bank executives at a time when people are struggling to pay their mortgages are a complete and utter disgrace.”

The West Brom was reportedly on the brink of collapse earlier this year until the Government stepped in. Its accounts for the year to March 31 show a pre-tax loss of £48.8 million.