Galpin gets payoff of pounds 350,000

Click to follow
The Independent Online
RODNEY GALPIN, the outgoing chairman of Standard Chartered Bank, will receive a one-off compensation payment of pounds 350,000 on his early retirement, the bank confirmed at its annual meeting yesterday, writes Lisa Vaughan.

The payoff, which sparked objections from shareholders at the meeting, is likely to be interpreted as confirmation that the departure of Mr Galpin was linked to the accident-prone image of the bank during his five-year tenure.

Mr Galpin, 61, was paid pounds 393,093 in 1992 and was under a rolling contract from which he is departing early. Mr Galpin left the bank yesterday and is succeeded by Patrick Gillam, formerly a managing director of BP.

The bank strongly denied that Mr Galpin was edged out. His decision to retire, announced late last year, was described as a personal one.

Mr Galpin will also receive a pounds 29,000 contribution towards his pension entitlement.

At yesterday's annual meeting, one shareholder called the payment 'outrageous and immoral'. Others called for stricter controls on directors' pay.

Standard Chartered lost pounds 305m in the 1992 Bombay stock market fraud, making bad debt provisions of pounds 272m and sacking 15 employees as a result.

It was also involved in a string of high-profile UK lending mistakes during the recession.