Craig Donaldson to step down as Metro Bank’s CEO
Dan Frumkin, currently Chief Transformation Officer, has been appointed to the Board as Interim CEO effective January 1, 2020.
The consequences of the accounting “blunder” that rocked Metro Bank PLC (LON:MTRO) at the start of 2019 continue to rattle the company, with major leadership changes announced earlier today.
The bank announces that Craig Donaldson, who has been Metro Bank’s Chief Executive Officer (CEO) since 2009, has agreed with the Board that he will step down at the end of the year. He has been at the helm of the bank through what has been a challenging period. Craig Donaldson will remain available to the Board as an advisor until the end of 2020.
Dan Frumkin, who joined Metro Bank in September 2019 as Chief Transformation Officer, has been named Interim CEO effective January 1, 2020, subject to regulatory approval. The Board of Metro Bank will commence a process to search for a new CEO, which will consider both internal and external candidates.
Craig Donaldson will be treated in accordance with Metro Bank’s approved remuneration policy, which means that during his 12 month notice period, he will receive his salary, pension and non-cash benefits. He has decided not to receive any variable reward for 2018. He will not receive any variable reward for 2019 and 2020. No further options or awards will be granted.
In late January 2019, Metro Bank revealed a major accounting error regarding how it classifies its loan book. The announcement about the error pushed the shares of the company sharply down, prompting it to raise fresh capital. The bank warned back then that the errors, in the way it had calculated the weight of some commercial loans and buy-to-let loans to major landlords, would take a chunk out of its risk-weighted assets.