Metro Bank boss Craig Donaldson to stand down after bruising year | Business News


The boss of Metro Bank is to step down after a decade in the job following a turbulent year for the lender.

Chief executive Craig Donaldson will leave his post at the end of 2019, although he is set to remain as an adviser to the board until the end of next year.

Until a successor is found, the top role will be filled by chief transformation officer Dan Frumkin, who only recently joined the bank.

Craig Donaldson is set to remain as an adviser until the end of next year.

Mr Donaldson’s imminent departure comes after Metro Bank founder and chairman Vernon Hill stood down in October following months of pressure from investors.

Metro Bank’s shares have collapsed since the start of 2019 when it revealed a £900m accounting blunder.

It’s troubles were added to after it was forced to abandon a bond offer, initially planned to raise £250m.

The group relaunched fundraising plans earlier in October, looking to raise £300m, which soared to around £475m on strong demand from investors.

However, since then, the group revealed it had swung to a £2.2m loss in the third quarter, from profits of £15.1m a year earlier.

Mr Donaldson said: “I am proud of Metro Bank’s achievements during the past decade.

“From a standing start, we brought something very different to banking for customers and colleagues.

“While this has undoubtedly been a challenging year, it has been a privilege to serve.”

Metro Bank founder Vernon Hill previously established Commerce Bank in the United States in the 1970s
Metro Bank founder Vernon Hill stood down in October under pressure from investors

Sir Michael Snyder, chairman of Metro Bank, paid tribute to Mr Donaldson and said his priority was to appoint a permanent chief executive and new non-executive directors “who will bring even more retail banking experience”.

Mr Donaldson will be paid his salary, pensions and benefits during his year’s notice period, but has waived any potential bonus for 2018 and will not receive any payouts for 2019 or 2020.

Mr Frumkin, 55, will be paid £690,000 a year as interim chief executive.


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