Alliance & Leicester chief David Bennett to get bonus
August 20, 2008
Alliance & Leicester (A&L) chief executive David Bennett is set to receive a bonus of up to £750,000 if he stays with the company when it is taken over by Santander. This is according to documents released to shareholders yesterday.
Also the banks 7,500 workers will each receive more than £900 of shares in Santander, the bank that is buying A&L for £1.3 billion.
A&L sent hundreds of pages of information on the takeover to its 564,000 shareholders. Investors have until September 16 when a meeting will be held to decide whether to approve the acquisition.
Under the terms of the deal announced in July, shareholders will receive one share in Santander in return for every three A&L shares. If the investors approve the takeover A&L will disappear from the London Stock Exchange on 10th October and will become a subsidiary of Santander in Britain.
The document also revealed that Santander will offer A&L’s tope four executives, including David Bennett, a bonus of between 75% and 125%of their salaries to stay with the company until the end of November next year.
If they are made redundant before then they will receive a pro-rata bonus depending on how long they had been at A&L. Mr Bennett, who has been in his current position a little over a year, will be paid a base salary of £600,000 this year. He also has A&L shares valued at more than £182,000 through Santander’s 299p-a-share offer.
The Spanish bank, which is the seventh largest in the world, has said it would do its best to avoid compulsory redundancy.
For more information on Santander and Alliance & Leicester visit www.santander.com and www.alliance-leicester.co.uk.
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