Chief exec Geddes could net £3m share incentive
Direct Line Group (DLG) bosses will be paid multi-million pound bonuses as the insurer prepares for its planned flotation, according to the Sunday Times.
DLG chief executive Paul Geddes is expected to receive shares worth about £3m when the RBS-owned insurance unit is spun off from its parent this year, the newspaper said.
The “golden handcuff” deals are designed to lock in senior staff following the initial public offering.
It is understood the bonus schemes will pay out only if the senior staff hit performance targets and stay at the firm for at least three years.
A spokeswoman for Direct Line said the company disputed the £3m figure for Geddes, and stressed that the arrangements were effectively a continuation of existing long-term incentive schemes, but using DLG shares instead of RBS shares.
The spokeswoman said: “There will be no IPO ‘windfall’ or ‘bonuses’ for management. In common with most FTSE companies, and as with existing RBS Group provisions, there will be long-term, performance-linked incentives, in order to align management interests with shareholders. But nothing more.”
DLG, which announced 891 job losses earlier this month as part of a £100m cost saving plan, has also not ruled out further job cuts.
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