Rewards: Skipton's Stuart Haire was just one of the bosses to pick up a big payout
When Stuart Haire joined Skipton, one of the country's biggest building societies, on New Year's Eve last year, he said he was 'hugely excited and humbled' to become its chief executive.
What he or the building society, owned by its customers, did NOT reveal is that for his one day of work in 2022 – Saturday, December 31 – he received remuneration of £1,151,000. The equivalent of £143,875 an hour, assuming he worked an eight- hour day. An almighty financial jackpot, whichever way you spin the wheel.
Haire's rewards are the most outlandish to be revealed by an exclusive survey of building society chief executive pay conducted last week by The Mail on Sunday. We examined the latest report and accounts of all 43 societies which between them manage assets in excess of £500 billion and look after the savings of more than 22 million customers.
The key data is provided in the table below. The year ends range from the end of January 2022 (Scottish) through to the end of December 2022.
Although many of these longstanding institutions do a great job supporting local communities and paying savings rates superior to those offered by high street banks, executive excess is rife within their boardrooms. According to our analysis:
- Twenty five of the 30 societies with year ends of December 2022 paid their bosses a bonus for their work during 2022;
- Bonuses ranged from a modest £7,157 collected by the boss of Penrith to the £408,000 paid to the head of Yorkshire who was chief executive for just over half the year;
- The total remuneration received by these 30 bosses ranged from the £1,151,000 received by Skipton's Haire, down to £55,000 that the new boss of Bucks got for four months' work. Remuneration comprises salary, bonuses and benefits such as pensions and cars. And in some cases, as with Skipton's Haire, 2022 remuneration included compensation for losing bonuses from a former employer;
- In only one case – the Principality – out of the 30 societies with December 31 year ends did a boss see their overall pay fall in 2022 (one other saw their remuneration fall in the year to April 2022);
- Seven of the 30 bosses received double-digit increases in remuneration for their work in 2022;
- During 2022, most building societies saw a boom in profits with a sharp increase in the net income (the net margin) they received from customers. This is the difference in the interest payments that building societies receive from mortgage borrowers and pay to savers.
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Although Stuart Haire was announced as the boss of the 150-year-old Skipton in late June last year, he did not join until the last day of 2022. The society's 2022 accounts show that he received £1,151,000 – £3,000 of it being 'salary'.
The rest, as explained in footnotes, comprises compensation for rewards he forfeited as a result of leaving his previous employer HSBC. He joined HSBC in 2017, becoming head of wealth and personal banking in 2020. Of the £1,148,000 'compensation' paid to Haire by Skipton, £345,000 represents the value of the 2022 'bonus opportunity' he lost by quitting HSBC. The rest – £802,686 – represents the value of forfeited 'HSBC deferred cash and share awards'.
Alan Debenham, founder of the Building Societies Members Association, says that while societies such as Skipton are keen to promote their mutual values – owned by members (customers), not shareholders – mutuality does not extend into the boardroom.
Too many societies such as Skipton justify eye-watering executive pay by pointing to the financial rewards bank executives receive. That's not right
Alan Debenham, founder, Building Societies Members Association
He says: 'Too many societies such as Skipton justify eye-watering executive pay by pointing to the financial rewards bank executives receive. That's not right. It's time for a renaissance in the membership focus of building societies, with the rewards directed into the pockets of savers rather than executives.'
While Skipton – the country's fourth largest behind Nationwide, Coventry and Yorkshire – says in its accounts that it paid savers a 'fair' rate of interest in 2022, the minimum it paid on a variable rate account (1.75 per cent) was only half that of bank base rate at the year end.
Indeed, the society saw net interest income soar from £296.7 million to £424.4 million, contributing to a jump in overall profits of 9.9 per cent to £298.8 million.
On Friday, Skipton said while Haire's rewards of £1,148,000 counted towards his 2022 remuneration, they represented 'deferred payments that span beyond five years'.
It added: 'Pay is set by a remuneration committee comprising independent non-executive directors and supported by external professional advisers.
'The pay of all executive directors is benchmarked against the marketplace to ensure it is appropriate in comparison to our competitors, and sufficient to attract and retain people with the skill and capability needed to run the complex and diversified Skipton Group, which includes the UK's largest estate agency.'
The Mail on Sunday asked Coventry, Yorkshire, Leeds and Newcastle to defend the remuneration paid to their respective bosses (£967,000, £965,000, £752,000 and £730,000).
Coventry said: 'To be one of the UK's best mortgage and savings providers, we need the best people to deliver the services, value and security that our members expect. And whether it's a branch customer service assistant, an IT developer, or the chief executive, we benchmark our roles against similar organisations in order to attract and retain the talented people we need.
'Under Steve Hughes' leadership we've raised savings rates quickly and continued to offer higher rates than the market average – paying £230 million in additional interest to members as a result.'
Yorkshire said the remuneration paid to Alasdair Lenman was aligned with the society's goal of enduring business success. It said its savings rates last year beat the market average consistently – by 0.56 per cent.
Newcastle boss Andrew Haigh received an inflation-busting increase in 2022 of nearly 24 per cent. The society said the increase was part explained by an independent review of executive rewards, 'helping to bring them closer in line with peers in the sector and the wider marketplace'.
Leeds said bonuses for staff, including directors, were 'linked to successfully achieving corporate and personal objectives'. It also pointed out at last year's annual general meeting, more than 92 per cent of voting members gave the thumbs-up to the directors' remuneration.
Members have the right to vote on 2022 executive remuneration at AGMs, many held this month. Votes can be made online or in person. Nationwide's 2023 accounts will be published next month. All eyes will be on the remuneration of new boss Debbie Crosbie.
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Al Rayan Bank pays 4.5% to holders of its ‘one-year fixed bond’. The account can be opened with £5,000. This rate is the 'expected profit rate' under Sharia compliant accounts. The bank monitors the target profit on a daily basis to ensure it is achievable.
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How much money do you need to make a day to make $1000000? ›
If you want your business to generate one million dollars a year, that means you must make $83,333 a month, or $20,833 a week, or $4,166 per business day.What would you do if you had a million dollars answer? ›
- Open a restaurant. ...
- Travel the world. ...
- Start a business. ...
- Give back to loved ones. ...
- Pay off debt. ...
- Achieve a childhood dream. ...
- Serve the community. ...
- Create scholarships for others.
- Investment banker.
- Certified public accountant.
- Day trader.
- Real estate agent.
Have you ever wondered who makes a million dollars a year? Making a million dollars a year or more puts you in the top 0.1% of income earners in the world. A top 1% income is over $500,000 today in America. With such an income, you should eventually have at least a top 1% net worth of over $11 million per person.How long can you live off $1 million dollars? ›
Assuming you will need $40,000 per year to cover your basic living expenses, your $1 million would last for 25 years if there was no inflation. However, if inflation averaged 3% per year, your $1 million would only last for 20 years.Is $1000000 considered wealthy? ›
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.What would you do for a million dollars questions? ›
- Would you lick this toilet for a million dollars? ...
- Would you scrounge your million dollars out of this rat-infested garbage bag? ...
- Would you eat a ball of hair that was just pulled out of your bathtub drain for a million dollars?
Being rich currently means having a net worth of about $2.2 million. However, this number fluctuates over time, and you can measure wealth according to your financial priorities. As a result, healthy financial habits, like spending less than you make, are critical to becoming wealthy, no matter your definition.How many US citizens make over $1 million a year? ›
In the 2019 data, there were 222 households that made over $50 million. In 2020, it was 358. In 2020, there were 184,631 households with wages over $1 million. 117,713 households hit that number in 2021.What is the most common job of a millionaire? ›
- Executive management.
How much income will 1 million dollars earn? ›
Here's how much $1,000,000 will earn in one year in different scenarios: In a 4% high-yield savings account: $40,000 in interest. In the stock market: $96,352 in returns. In real estate: $108,000 in returns.How much taxes do you pay for $1 million dollars? ›
So, for example, the tax on $1 million for a single person in 2023 is an estimated $328,163. That's a lot of money, but it's still almost $42,000 less than if the 37% rate were applied as a flat rate on the entire $1 million (which would result in a $370,000 tax bill).What is the top 1% salary single? ›
- Individual Income Percentile Calculator.
- Household Income Percentile Calculator.
- Average, Median, and Top 1% Household Income.
- Average, Median, and Top 1% Individual Income.
1,000,000 ₸ yearly is how much per hour? If you make 1,000,000 ₸ per year, your hourly salary would be 481 ₸. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week. How much tax do I pay if I make 1,000,000 ₸ per year?Can I retire at 60 with $1 million? ›
So, can you retire at 60 with $1 million, and what would that look like? It's certainly possible to retire comfortably in this scenario. But it's wise to review your spending needs, taxes, health care, and other factors as you prepare for your retirement years.Is $1 million enough to retire at 65? ›
A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.What is the average 401k balance for a 65 year old? ›
The average 401(k) balance by age.
|Age||Average 401(k) balance||Median 401(k) balance|
A high-net-worth individual (HNWI) is someone with liquid assets of at least $1 million. These individuals often seek the assistance of financial professionals to manage their money, and their high net worth qualifies them for additional benefits and investing opportunities that are closed to most.What income is upper class? ›
There are about 22 million millionaires in the U.S. 8.8 % of U.S. adults are millionaires. 33% of U.S. millionaires are women. 76% of millionaires in the U.S. are white, and white people account for 60% of the total U.S. population.
How long would it take to spend $1 billion at $1000 a day? ›
If someone then gave you a billion dollars and you spent $1,000 each day, you would be spending for about 2,740 years before you went broke.How much interest will I earn per month on $1 million dollars? ›
High-Interest Savings Accounts
That would translate into $5,000 of interest on one million dollars after a year of monthly compounding. The 10-year earnings would be $51,140.13. The rates on both traditional and high-interest savings accounts are variable, which means the rates can go up or down over time.
Let your money sit for 25 years
If you're earning a 10% average annual rate of return (which is the stock market's historical average), it will take approximately 25 years to go from $100,000 to $1 million. But if you're earning slightly lower returns, it will take longer.
A million dollars is a lot of money, so you may be able to use it to tackle a bunch of the above -- get out of debt, set up an emergency fund, invest a lot of it for your future, and then... perhaps make a down payment on a new home, buy a new car, and take a big trip!How to save a million dollars in cash? ›
The longer you wait to start saving, the more cash you'll have to put aside each month to reach your goal. If you wait until retirement is 20 years away, you will need to save $1,382 per month to hit the million-dollar mark, assuming a 10% return. At 6% you will need to save $2,195 per month!What is the one million question? ›
(figurative) A question that is very important and/or difficult to answer.How old is the average millionaire? ›
The average age of a first time millionaires is 37, it has been found. In data released by Betway Insider, the average age of a first time billionaire is also revealed: and is a little higher at 51. So, if you're not quite there yet, what can you do to make your first million?What net worth is considered a millionaire? ›
A net-worth millionaire is someone who has a net worth of at least $1,000,000. Net worth is a fancy way to say 'what you own minus what you owe.How many Americans make over $2 million? ›
With roughly 157,000 filers estimated to have incomes over $2 million in 2020, this implies that about $320 billion exempt from the tax, making the overall base a bit over $750 billion.What is considered wealthy in retirement? ›
You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth. That's how financial advisors typically view wealth.
What percentage of Americans have over 1 million in retirement? ›
In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you're looking to be in the minority but aren't sure how to get started on that savings goal, consider working with a financial advisor.What is considered upper middle class? ›
Many have graduate degrees with educational attainment serving as the main distinguishing feature of this class. Household incomes commonly exceed $100,000, with some smaller one-income earners household having incomes in the high 5-figure range.Where do millionaires keep their cash? ›
Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills. Some millionaires keep their cash in Treasury bills. They keep rolling them over to reinvest them and liquidate them when they need the cash.What is a millionaire's best friend? ›
Here's a little secret: Compound growth, also called compound interest, is a millionaire's best friend. It's the money your money makes.Do millionaires play the lottery? ›
Rich people do play the lottery, of course; one of the largest-ever Powerball jackpots, a quarter of a billion dollars, was won by three asset managers from Greenwich, Connecticut.Can you retire on $1 million dollars plus Social Security? ›
It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.Can I retire at 45 with $1 million dollars? ›
Achieving retirement before 50 may seem unreachable, but it's entirely doable if you can save $1 million over your career. The keys to making this happen within a little more than two decades are a rigorous budget and a comprehensive retirement plan.How much do you need to retire at 65? ›
Experts say investors usually need about 80% of their pre-retirement income in retirement. So if they earned $100,000 per year pre-retirement, they'd need $80,000 per year in retirement. Investors who live well below their means will need less than 80% of their pre-retirement income when they leave the workforce.What is the highest tax rate in the US? ›
The U.S. currently has seven federal income tax brackets, with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you're one of the lucky few to earn enough to fall into the 37% bracket, that doesn't mean that the entirety of your taxable income will be subject to a 37% tax. Instead, 37% is your top marginal tax rate.Who pays the most taxes? ›
The highest-earning Americans pay the most in combined federal, state and local taxes, the Tax Foundation noted. As a group, the top quintile — those earning $130,001 or more annually — paid $3.23 trillion in taxes, compared with $142 billion for the bottom quintile, or those earning less than $25,000.
What percent is Social Security and Medicare? ›
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.What is a good salary in USA? ›
According to the US Bureau of Labor Statistics (BLS), the median annual wage across all occupations in 2021 was $58,260 . For a person living in Phoenix, Arizona, where the median wage is $56,610, earning above the national average may be considered very good.What salary is needed to live comfortably in USA? ›
Overall, Americans need an average post-tax income of $68,499 to live comfortably in the U.S., according to recent data from SmartAsset.How much does the average American make? ›
The average annual average salary in the U.S. is $60,575. The median annual salary, which is often less skewed by outlying numbers, is $56,420. It's worth noting that average and median salaries vary quite a bit by state.How many Americans make $10 million a year? ›
Here's the most eye-opening statistic. Some 23,456 U.S. households reported income of $10 million or more last year (that is, for the 2018 tax year), averaging more than $26 million each in taxable income. The IRS audited seven of them. That comes to less than three-hundredths of a percent.Is a $1 million dollar salary good? ›
Making a million dollars a year or more puts you in the top 0.1% of income earners in the world. A top 1% income is over $500,000 today in America. With such an income, you should eventually have at least a top 1% net worth of over $11 million per person.How much is 900k a year hourly? ›
If you make 900,000 ₸ per year, your hourly salary would be 433 ₸. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.How much do I need to save to make $1000000? ›
In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.How much money do I need to make a day to make $100000 in a year? ›
Dissecting Six Figures
At the heart of it all, making 100K a year means that you need to make approximately $8333 a month. Assuming 30 days in a month, that means you only have to make roughly $278 dollars a day in order to hit the magical six figures mark.
Consider investing in rental properties or real estate investment trusts (REIT). The real estate market is a fertile setting for a $100k investment to yield $1 million. And it's possible for this to happen between 5 to 10 years. You can achieve this if you continue to add new properties to your portfolio.
Can I retire at 60 with $1 million dollars? ›
So, can you retire at 60 with $1 million, and what would that look like? It's certainly possible to retire comfortably in this scenario. But it's wise to review your spending needs, taxes, health care, and other factors as you prepare for your retirement years.What percentage of Americans have $1000000 in savings? ›
Between 10-16% of American households have $1 million or more in retirement savings. If you define savings more broadly to include a household's net worth, the number rises closer to 20%, whereas if you limit it to individuals with $1 million+ in retirement accounts, the rate drops to 10%.How many people making over $100000 live paycheck to paycheck? ›
In December 2022, 51% of people who earn more than $100,000 reported living paycheck to paycheck, which is 7% more than the previous year, according to a survey from financial insight and advising companies PYMNTS and Lending Club.How many people making 100k are living paycheck to paycheck? ›
About 48% of Americans who earn over $100,000 were living paycheck to paycheck — up 1% from the previous month. There are financial consequences up ahead for the millions of Americans who barely have enough cash to meet their basic expenses.How many years can you live with $100,000 dollars? ›
But all the same, 100k in retirement can last up to 30 years if you stick to the general 4% thumb rule of financial planning during retirement. This rule suggests that retirees 65 and older should withdraw at most 4% of their savings during the first year of retirement.How long will $1 5 million last in retirement? ›
For example, if your money is sitting in the bank without earning any interest and you withdraw $5,000 per month or $60,000 per year, 1.5 million dollars for retirement will last for about 25 years. In the same scenario, but with a 3% return on investment, your money will last for 45 years and 3 months.How many years will a million dollars last you? ›
A recent analysis determined that a $1 million retirement nest egg may only last about 20 years depending on what state you live in. Based on this, if you retire at age 65 and live until you turn 84, $1 million will probably be enough retirement savings for you.Is $500,000 a big inheritance? ›
$500,000 is a big inheritance. It could have a significant impact on a person's financial situation, depending on how it is managed and utilized.How long would it take to spend a million dollars at $1000 a day? ›
Imagine someone gave you a million dollars and told you to spend $1,000 every day and come back when you ran out of money. You would return, with no money left, in three years. If someone then gave you a billion dollars and you spent $1,000 each day, you would be spending for about 2,740 years before you went broke.Why the first $100,000 is the hardest? ›
Saving Your First Million
7.84 years… to earn just the first $100K. That means you earned 4 times as much ($400K instead of $100K) in less time toward the end. Again, this is why Charlie Munger says the first $100K is the hardest and why you really need to do whatever it takes to get to that first $100K.
How many times do you need to double $1 to get to a million? ›
If you can keep doubling it just 9 times, you have a million dollars. If you can double it again, 9 times, you have a billion.