Major high street bank boss nets record £2.6m pay after axing over 1,000 staff roles

Joe Sledge
Thu, 16 Apr 2026 17:51:55 +0000

Dan Frumkin, chief executive of Metro Bank, has secured a £2.6million remuneration package for 2025, marking the largest payout ever awarded to a boss at the high street lender.

The total represents more than double the £1.2million he received the previous year, following approval from the bank’s board at a shareholder meeting alongside a complex bonus structure.

This increase comes as Metro Bank reports a significant financial recovery, with pre-tax profits reaching a record £87million for 2025 after a period of sustained instability.

That turnaround follows sweeping changes across the business, including the loss of more than 1,000 roles and the end of its once distinctive seven-day branch opening model.

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Founded in 2010 by American billionaire Vernon Hill, Metro Bank became the first new high street lender to launch in Britain for more than a century, initially attracting customers with dog-friendly branches and extended opening hours.

Despite early success, the bank faced a major setback in 2019 after an accounting error forced the departure of its founder and senior leadership team.

Mounting pressure continued in 2023 when regulators raised concerns about risk controls, prompting an urgent search for fresh capital to stabilise the business.

A £925million rescue package was ultimately secured from Colombian billionaire Jaime Gilinski Bacal, who took a 53 per cent stake in the lender.

Since taking over in 2020, Mr Frumkin has overseen a restructuring programme that has reshaped the bank’s operations, including job cuts and the introduction of Sunday branch closures.

Beyond his current pay package, the chief executive stands to earn substantially more through a long-term incentive scheme linked to Metro Bank’s share price performance.

Under the arrangement, payouts depend on the stock reaching and maintaining specific thresholds, with shares currently trading at around 141p and required to stay above 120p by 2028 for any bonus to be triggered.

Should the share price rise to 437p, a level that would represent a dramatic recovery from the bank’s earlier difficulties, Mr Frumkin could receive as much as £60million over five years.

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Shareholders approved the scheme with 88.6 per cent voting in favour, despite opposition from proxy advisory firms ISS and Glass Lewis, although the bank did not confirm how much support came from its majority shareholder.

Operational improvements have also contributed to the bank’s return to profitability, with costs reduced by seven per cent during 2025, exceeding the original target of between four and five per cent.

Mr Frumkin attributed these savings to renegotiated supplier contracts, streamlined processes and increased use of automation across the business.

A strategic shift towards corporate, SME and specialist lending has delivered further growth, with lending in these areas rising 56 per cent to £5.23billion.

Total underlying revenues increased by 16 per cent to £585.1million, reflecting stronger performance across key segments.

A Metro Bank spokesperson said: "The remuneration committee's approach is based on the delivery of long-term growth generation and the continued turnaround of the bank.

"The policy is fully aligned with shareholders' interests and the creation of shareholder value over a sustained period."