Virgin Money IPO: Jayne-Anne Gadhia to get £1m bonus, but misses a bigger payout on low valuation

Virgin Money’s chief executive yesterday received a bonus of almost £1m for successfully floating the business at a valuation of £1.25bn.

 

Jayne-Anne Gadhia was given around one-third of a million shares, amounting to 0.086 per cent of the bank’s stock and valued at just under £1m.

 

But she missed out on a bigger award – the maximum available under the incentive scheme was a shareholding of 0.25 per cent, had the float achieved a higher valuat­ion.

 

She sold 25 per cent of her shareholding, giving her £2.4m from the initial public offering (IPO), and leaving her with 2.8m shares – now worth just over £8m.

 

Gadhia has another £2m of shares awarded, but still to vest.

 

Chief finance officer Lee Rochford received shares worth £628,665 as his incentive payout.

 

 

Meanwhile, Sir Richard Branson sold a 15 per cent stake in the bank, leaving him with 34 per cent. And private equity backer Wilbur Ross sold a similar stake, leaving him with a 32.5 per cent holding. Both received £70m in the sale.

 

The shares rose by about two per cent in conditional trading yesterday, and will trade on the public market from next Tuesday.

 

£2.4m for 25 per cent of her shares

 

£70m for 15 per cent of Virgin Money

 

£70m for 15 per cent of Virgin Money