Direct Line chief’s package to exceed that of RBS boss

By ERIKKA ASKELAND
Published on 01/10/2012 00:00

Direct Line boss Paul Geddes will be eligible for an estimated £3 million windfall when the Royal Bank of Scotland-owned insurer floats this month.

On top of his £760,000 base salary, Geddes could collect a £1.3m annual bonus, according to the prospectus for the float published last week.

He is also set to receive £1.5m a year in shares, and annual pension entitlement of £190,000. He will also retain 1.2m RBS bonus shares when the insurer – owner of the Churchill and Privilege brands – makes its £2.6 billion stock exchange debut on 11 October.

This means Geddes will be set to take home more than RBS chief executive Stephen Hester, who was forced to give up a £963,000 bonus following public pressure.

London-based Geddes joined the bank in 2004 and was appointed chief executive of Direct Line Group in 2009.

RBS is floating Direct Line to comply with European rules on state aid. The majority-state-owned bank aims to sell at least 25 per cent of its insurance division to investors on flotation, and will eventually divest its remaining stake.