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On the money: New Chief Legal and General Antonio Simoes (pictured) received a $7.4 million golden handshake
Legal & General has defended a golden salute worth £7.4m awarded to new boss Antonio Simoes.
The insurance giant admitted the cash and stock award to the chief executive was “significant” but said it was “critical to securing Antonio’s appointment.”
The payment covers the cash and stock awards he lost when leaving Spanish bank Santander. It adds to an annual package for Simoes worth up to £7.2m, meaning he could take home £14.6m in his first year.
You are also entitled to receive an undisclosed lump sum to cover your move from Spain.
Simoes took up the role this year and is carrying out a “comprehensive review” which will be released in June.
Details of his golden handshake were revealed yesterday in Legal & General’s annual report.
It said: “The remuneration committee is confident that these represent the actual award levels being forgone.”
It comes at a time when some blame pay levels in the City for the UK’s declining status as a place for listed companies.
But Luke Hildyard, director of the High Pay Centre, said: “There is a need to address the pay culture we have allowed to develop, where a small number of high earners are able to absorb such extraordinary sums from companies.”
Simoes will receive £3.1m in cash and shares to replace his bonus at Santander plus £1.4m in cash and £2.9m in shares.
His £1.175m salary is complemented by an annual bonus of up to double and performance-linked share awards of up to three times the salary, plus a 10 per cent pension.