Financial Methods of Motivation | Higher Profits Means Bigger Bonuses at TSB

Higher interest rates might be bad news for the rest of us, but they are good news for staff at TSB who are set to receive a bumper profit-related bonus.

The Guardian Business team have the details of the bonus which for most staff will be approximately 12% of the normal pay.

The CEO is getting a much larger bonus. But, that's what CEOs get. So little point in the rest of TSB's staff complaining.

Rising interest rates are suggested by TSB as one reason why the "profits pool" used to calculate the bonuses has risen in value.

So too are the impacts of significant cost-cutting in previous years which are now leading to lower fixed costs.

TSB is now owned by Spanish investor Sabadell, a Spanish multinational bank and financial services company. Sabadell's reward for buying TSB for £1.5bn eight years ago? A large dividend of £50 million.