LONDON (Alliance News) - Virgin Money Holdings (UK) PLC on Tuesday said it will pay Peter Bole, its new chief financial officer, up to GBP1.8 million per year in basic pay, pension and bonuses, as the mortgage provider poached him from Tesco Bank.
Bole, who has led Tesco Bank's finance function since 2009, has previously held senior finance positions at Royal Bank of Scotland Group PLC and as an investment director at Standard Life PLC, and Virgin Money praised his "extensive experience" in UK retail banking.
Virgin Money said its new CFO is likely to replace Dave Dyer in 2017 as a result of his "contractual position" at Tesco Bank. Dyer will remain with the business in a part-time advisory role "for a period of time"once he hands over his responsibilities.
Bole's remuneration package breaks down as a basic salary of GBP500,000, pension contributions worth 20% of that amount, and benefits comprising life cover, permanent health insurance and private medical cover. He also will have the potential to receive an annual bonus and long-term incentive plan shares, together worth up to 200% of his GBP600,000 fixed pay total.
On top of his salary, Virgin Money will compensate Bole for quitting Tesco Bank and missing out on similar share incentives at the rival lender. In one award, Bose will receive Virgin Money shares worth GBP653,873, and although they won't be subject to performance conditions, a second award of GBP472,914 in Virgin Money shares will be made depending on meeting certain criteria.
Both share awards will vest in line with those forfeited in the process of leaving Tesco Bank.
In addition, Virgin Money will hand Bose a one-off award for up to GBP749,000 to compensate for remuneration he may forfeit in 2015/16 as a result of leaving Tesco Bank.
In addition to appointing a new finance boss, Virgin Money said Hugh Chater, currently at RBS and previously of Bank of America's MBNA credit cards business, will become its new chief commercial officer, and handed him responsibility for the full range of its products, including credit cards.
Both Bole and Charter will report to Virgin Money's chief executive, Jayne-Anne Gadhia.
Shares in Virgin Money were up 0.6% at 345.10 pence Tuesday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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