£660k package for West Bromwich Building Society boss

A £660,000 pay and bonus package for West Bromwich Building Society's chief executive is set to be approved at an annual meeting tomorrow.

Shareholders are likely to back a package for Robert Sharpe, who was parachuted into the hot seat in October 2008 to bail out the crisis-hit organisation. The deal includes a salary of £390,000 and an annual bonus of £150,000.

It also includes benefits in lieu of pension contributions of £98,000 and other benefits of £22,000 - widely held as a just reward for saving the society in one of its darkest hours.

Chairman Mark Nicholls said Mr Sharpe was brought in to turn things around, as the society was on the brink of being broken up because of its debts.

"He has fulfilled the terms of his contract, saving the society, and is fully entitled to the bonus he has received," he said. "He has devoted himself heart and soul in turning it around."

Mr Sharpe was behind a £182.5 million deal which stopped the 160-year-old organisation from going under.

The society made a pre-tax loss of £48.8 million in 2008-9, compared to a £41 million profit the year before. Mr Sharpe struck a deal with insurance firms who took on the debt in return for a 25 per cent share of future profits.

In the year to the end of March 2010 losses were cut to £18.5 million.

The meeting, at Walsall FC's Banks's stadium tomorrow afternoon, will also hear of a major rebranding exercise likely to include a new logo - although the West Brom name will not go.

There may be dissent from shareholders saying they are being cold shouldered 12 months after their shares were devalued to get the business back on track.

As part of turnaround measures a new type of share called profit participating deferred shares were issued but some smaller investors say this cut was without consultation.