Virgin Money is expected to be valued at up to £1.5bn when it floats on the stock market later this month, potentially landing its boss, Jayne-Anne Gadhia, a multimillion-pound windfall.
Gadhia, who has run the business since 2007, is entitled to a maximum award of shares over the next 18 months worth up to 0.25% of the value of the business when it floats.
This could be up to £3.6m if she is awarded the maximum, although the precise basis upon how the value of shares will be allocated is not clear, and it could be lower than this.
More details are likely to be contained in the prospectus accompanying the share sell-off.
The new finance director, Lee Rochford, is also entitled to shares, and 2,800 staff have been told they will receive £1,000 in free shares.
There had been expectations that the bank, part owned by Sir Richard Branson and the US investor Wilbur Ross, could be valued as high as £2bn when the float was first mooted. A price range of 283p to 333p per share is now being discussed, which would value the 75-branch business at between £1.2bn and £1.5bn.
