Provident Financial’s ex-boss to miss salary and benefits

The new CEO ordered a shake-up last week following a new profit warning
The new CEO ordered a shake-up last week following a new profit warning

The former boss of embattled subprime lender Provident Financial will miss out on a year’s worth of salary, pension benefits and bonuses.

The firm, which has seen its share price crash 71% since June, said ex-chief executive Peter Crook had agreed to forgo the amount covering his 12-month notice period.

While Mr Crook will hold on to some share awards under the firm’s 2013 performance share plan, the company said benefits under the long-term incentive scheme “will lapse immediately”.

It added that Mr Crook’s pension of £1.262 million would be paid out on July 15 next year when he turns 55.

It comes after the new head of Provident Financial ordered a management shake-up at the firm’s consumer credit business last week following another profit warning from the firm.

Manjit Wolstenholme, who took on the role of executive chairman when Mr Crook stepped down, has removed Andy Parkinson as managing director of the division as part of a review.

Provident, which has around 2.5 million customers, launched a new home credit model in July with the aim of moving from self-employed door-to-door agents to full-time “customer experience managers”.

But the lender previously warned that the rate of progress being made is “too weak” and that its pre-exceptional loss this year is likely to be in the range of £80m to £120m, which resulted in shares plunging.

To compound the misery, the firm also revealed that the Financial Conduct Authority is investigating a Repayment Option Plan which Provident offers through its Vanquis Bank arm.