VIRGIN Money chief executive Jayne-Anne Gadhia is to be the highest-profile casualty of the bank’s takeover by rival CYBG, with the organisations announcing that she will be taking redundancy as part of the deal.

In documents sent to shareholders, Clydesdale Bank owner CYBG said that Ms Gadhia has agreed “in principal” to remain as a senior adviser to CYBG chief executive David Duffy for up to 18 months after the deal completes, but that ultimately she would be made redundant from the business.

Read more: CYBG to cut 1,500 jobs following £1.7 billion takeover deal with Virgin Money

Ms Gadhia will be entitled to a termination payment of £1.14 million, a bonus of £1.03m and an award of nearly 841,000 shares when she leaves. Virgin Money shareholders are being asked to okay a further redundancy payment of over £619,000, taking her total cash settlement to £2.8m.

“The current directors’ remuneration policy of Virgin Money does not provide for executive directors to receive redundancy payments on the same basis as all the other employees of the Virgin Money Group in accordance with the Virgin Money Group’s current redundancy policy,” the document said.

“To remove this difference in treatment, Virgin Money will propose […] an amendment to the Virgin Money directors’ remuneration policy to permit the payment of redundancy payments to Virgin Money executive directors on the same basis as other employees.”

Read more: Virgin Money beats profit forecasts ahead of CYBG merger

The bank’s redundancy policy is to pay staff 3.5 weeks’ worth of salary for each year of full service plus a pro-rata figure for any incomplete year. The total is capped at 104 weeks’ pay.

When the deal completes the enlarged bank will have around 9,500 staff, 1,500 of whom are expected to be paid off.