Phantom options to give TSB executives pounds 1.7m
Wednesday 11 October 1995
Experts said the six directors would automatically be entitled to pounds 7.4m, which they can take immediately. The remainder of the pounds 9m, together with the phantom options, are likely to be subject to negotiations as the exercise dates have not yet arrived. Directors who stay on may also decide not to take their full entitlements but instead transfer them into a new benefits package in the merged company.
The phantom options, granted in 1993, are cash bonuses linked to the growth of TSB's share price above a base line of 143p, compared with last night's close of 353p. They provide the same profit as a conventional option without the need to buy any shares.
Peter Ellwood, the chief executive, would be eligible for a payment of pounds 604,000, John Burns for pounds 402,000, John Elbourne for pounds 424,000 and Michael Fairey for pounds 265,000. These four board members, together with two others - Hugh Freedberg and the chairman Sir Nicholas Goodison - are also set to make a pounds 5.66m pre-tax profit on conventional share options.
Sir Nicholas leads with pounds 1.42m, taking his total potential reward to nearly pounds 2.3m, followed closedly by Mr Ellwood with pounds 1.3m, bringing him a possible total of pounds 2.7m.
These figures are based on options listed in the most recent annual report, for 1994. TSB refused to say whether there had been any change in the number of options held by directors since the end of the 1994 financial year. The directors are also in line for a further pounds 1.777m, assuming they exercise their options and receive the special dividend of 68p a share promised as part of the merger terms.
The executive members of the board also have a series of other options that they can exercise from various starting dates over the next four years, with the first in March next year. These are showing a paper gain of pounds 1.7m.
The bonanza awaiting TSB executive directors
Paper profit: options exercisable 1994-5
Special dividend @ 68p
Paper profit: other options
First year other options exercisable
JA Burns 975,000 290,000 178,000 1996 402,000
JK Elbourne 900,000 278,000 257,000 96 -98 424, 000
PB Ellwood 1.3m 424,000 360,000 96-97 604,000
ME Fairey 81,000 24,000 378,000 96-99 265,000
HR Freedberg 990,000 325,000 110,000 96-97
N Goodison 1.4m 436,000 420,000 96-99
TOTAL 5.660m 1.777m 1.703m 1.695m
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Striker's four-month ban for biting an opponent expires on Friday
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...
Competitive (DOE): Guru Careers: A COO / Chief Operating Officer is needed to ...