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.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel