2.5m pounds bill for departures

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The Independent Online
HONGKONG and Shanghai Banking Corporation may have to pay as much as pounds 2.5m in salary and share options to Gene Lockhart and George Loudon, two directors of Midland Bank who are expected to depart after a reorganisation.

Mr Lockhart, an American who is in charge of UK banking, is Midland's highest-paid director and could receive as much as pounds 1.7m.

He is entitled to three years' notice on his salary of pounds 400,000. He also has options to buy 268,588 Midland shares at prices that would currently give a pounds 500,000 profit.

Mr Loudon, head of Midland Montagu, also has a three-year notice period at around pounds 200,000 a year and an immediate profit on exercising his 96,608 options of more than pounds 200,000.

Bernard Asher, an HSBC director, is expected to take charge of the Samuel Montagu, James Capel and Wardley businesses.