TIM O’Toole is set receive further payments from FirstGroup of at least £1 million following his sudden exit this week.
Mr O’Toole stepped down from the Aberdeen-based transport giant with immediate effect on Thursday as it posted a £327m loss and slashed the valuation of its Greyhound coach business in the US.
FirstGroup said last night that Mr O’Toole, who had been in charge for eight years, has agreed to be placed on garden leave until his employment with the company ends on September 30. It said he will continue to receive his current salary, benefits and pension until that date. He will also receive a maximum payment of £699,167 in lieu of salary, pension, car allowance and medical insurance for the unexpired period of his notice.
Mr O’Toole was paid a salary of £846,000 and received pension contributions of £197,000 last year.
FirstGroup added that Mr O’Toole will be reimbursed up to £9,000 per year for expenses relating to tax advice for the years 2017/18 and 2018/19 and receive a capped contribution towards reasonable legal fees in connection with his departure.
The transport giant also announced that chairman Wolfhart Hauser will receive an extra £300,000 on a per annum basis for acting as executive chairman while the search for a new boss takes place. That will take his total fees to £595,000 for the interim period, on a per annum basis.
FirstGroup said Mr Hauser will use the majority of the additional fees to buy shares in the company, and not take part in any incentive arrangements or receive executive benefits.
Mr O’Toole’s exit has heightened speculation that the rail and transport giant could be broken up.
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