• Bank arranges long-term incentive plan for CEO between 2016-18
  • Winters and other top managers get no annual bonus for 2015

Standard Chartered Plc arranged an $8.4 million incentive for Chief Executive Officer Bill Winters to turn the bank around after scrapping annual bonuses for all senior managers.

Winters, 54, didn’t get a bonus for 2015 on top of his $2.4 million salary and fixed pay allowances, the bank said in its annual report on Tuesday. The CEO and Chief Financial Officer Andy Halford instead received so-called long-term incentive plans for their performance between 2016 and 2018, linked to the strategic plan they laid out in November to cut risk, boost capital and profitability.

Standard Chartered cut the aggregate bonus pool for all staff by 22 percent to $855 million. It reported its first full-year loss since 1989 as revenue slumped, while loan impairments almost doubled to the highest in the bank’s history. While Winters and Halford had their bonuses withdrawn, former CEO Peter Sands also had his annual incentive for 2015 scrapped.

Winters, a former head of JPMorgan Chase & Co.’s investment bank, received shares worth $9.9 million from a buy-out award to compensate him for quitting the Renshaw Bay hedge fund he founded to take the reins at Standard Chartered in June.

Eliminating awards for top executives helped save money to protect the bank’s bonus pool for junior employees, Winters said on a call with reporters. The CEO also said the bank refused to pay out on long-term incentives awarded in 2013 after performance conditions weren’t met.

“That’s exactly the outcome that Andy and I will not enjoy if we fail to hit our targets,” Winters said on the call. “Equally clearly, that’s not our intention.”

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