By Kristy Dorsey

Virgin Money chief executive David Duffy saw his total remuneration double in 2021 following the award of nearly £1.4 million of shares under the banking group’s long-term incentive plan (LTIP).

Details of Mr Duffy’s pay arrangements contained within the Glasgow-headquartered group’s annual report have been published just weeks after the owner of the former Clydesdale Bank unveiled plans to further slash costs as part of its digital drive.

Virgin said earlier this month that it wants to save approximately £175m between now and 2024, casting further doubt on the future of its branch network. It followed the announcement in September that the group will cut a further 12 branches in Scotland, reducing its network to a total of 33.

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Mr Duffy was granted awards over 1.14 million LTIP shares, with a value of up to 177 per cent of his salary, in December 2018 with his pay-out linked to targets over the three financial years to September 2021. He was deemed to have met 60% of those performance targets.

On top of his total fixed income of £1.24m and an annual bonus of £140,000, the LTIP award took his total remuneration to £2.75m, compared to slightly less than £1.4m the previous year.

The LTIP shares will be released in tranches starting next month and running through to December 2025. Mr Duffy must hold half of the shares received on each release date for at least 12 months.

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Clifford Abrahams, who joined Virgin Money as chief financial officer in March of this year from the same job at ABN Amro, earned £342,000 of his £600,000 basic salary during the period. A further £43,000 in benefits and pension allowances, plus an annual bonus payment of £46,000, took his total remuneration for the seven months to £431,000.

Virgin is expected to return to a profit for the year to September after chalking up three years of losses following its acquisition of Clydesdale Bank owner CYBG.