Pay-offs of pounds 4.4m for Lloyds Chemists men

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Directors of Lloyds Chemists are set to receive pay-offs totalling pounds 4.4m following last week's agreed pounds 550m bid from UniChem. The four executive members of the board also stand to make a combined profit of pounds 1.92m from options over Lloyds shares at last night's price of 421p, down 5p on the day.

Allen Lloyd, chairman, will receive pounds 1.6m under a severance settlement well in excess of the minimum laid down by his two-year service contract. He is currently paid pounds 510,000 a year. In addition, Lloyds has agreed to pay pounds 1.2m into a pension scheme to buy out his accrued rights and he could pick up pounds 201,000 profits on options in which he has an interest.

Mr Lloyd has also been given an option to buy two Lloyds subsidiaries, GJ Maley and Savory & Moore (Jersey), at their current market price, subject to no competing offer topping his price. His stake in Lloyds is worth pounds 38.4m at the current price.

Richard Turner, Lloyds' commercial director, is to receive a severance payment of pounds 571,000 and is sitting on option profits of pounds 702,000. Michael Ward, managing director, picks up a pounds 527,000 pay-off, has options showing a surplus of pounds 120,000 and has been granted a new contract with UniChem at his old rate of pounds 200,000 a year, plus a bonus of pounds 177,000.

Martyn Hardy, who is also being kept on within UniChem at his former salary of pounds 100,000 a year, collects pounds 241,500 and has options showing a profit of pounds 68,000.

Jonathan Fellows, finance director, has agreed a consultancy with UniChem worth pounds 77,000 a year, while Mr Turner has agreed a similar two-year deal worth pounds 168,000 in the first year.