The chief executive of Metro Bank has received a remuneration package totaling £2.6 million, marking the highest compensation in the bank’s history. This comes just one year after the organization reduced its workforce by 1,000 employees due to a crisis nearly leading to its collapse.
This latest compensation is more than double the £1.2 million that Dan Frumkin earned in 2024. The decision to implement this significant pay increase and a complicated bonus structure for Frumkin, who previously held positions at RBS and Northern Rock, was made during a shareholder meeting last year.
Since its establishment in 2010 as the first new high street bank in the UK in over a century, Metro Bank has not seen any chief executive compensated at this level. The bank was founded by American billionaire Vernon Hill, who initially attracted a large customer base by introducing dog-friendly branches and extended operating hours.
However, in 2019, Metro Bank faced a major accounting blunder that led to the resignation of its top executives, including its founder. By 2023, the bank found itself in need of new investment after failing to convince regulators of its risk assessment capabilities.
In a rescue effort in 2023, Colombian billionaire Jaime Gilinski Bacal acquired Metro Bank for £925 million, which initiated a turnaround strategy that included significant job cuts and the closure of branches on Sundays.
Currently, Bacal holds a 53% stake in the bank, which has successfully shifted its focus toward corporate lending. This strategic move has resulted in a record pre-tax profit of £87 million for 2025, contributing to the board’s decision to significantly increase Frumkin’s compensation package. His pay includes a £1.2 million annual bonus and a deferred bonus of £470,000 from 2023, alongside a salary of £938,875, plus additional benefits such as tax, life insurance, and pension contributions.
Frumkin, who is recognized for his role in restructuring Northern Rock after the 2007-08 financial crisis, is currently working under a complex bonus arrangement that could yield him up to £60 million over a five-year period, contingent on Metro’s share price performance.
The bank’s shares are currently valued at approximately 141p, which means they would need to exceed 120p by 2028 for Frumkin to receive the bonus. Should the share price rise to 437p—a remarkable recovery from the near collapse in 2019—Frumkin could receive a one-time payment of up to £60 million.
This bonus scheme received approval from shareholders, with 88.6% voting in favor, despite concerns raised by proxy advisory firms ISS and Glass Lewis. Metro Bank has not disclosed how many votes in favor were cast by Bacal.
A spokesperson for Metro Bank commented on Frumkin’s 2025 pay package, stating, “The remuneration committee’s strategy is focused on achieving long-term growth and the ongoing recovery of the bank. This policy is fully aligned with the interests of shareholders and aims to enhance shareholder value over time.”
Frumkin took on the role of chief executive in 2020.
