Cash for axed bosses

Directors of the Derbyshire will receive hundreds of thousands of pounds in redundancy pay following its merger with Nationwide.

A merger notification statement sent by the mutual and seen by Mortgage Strategy reveals that Graham Picken, chief executive of the Derbyshire, will be made redundant on August 31 next year. He will receive a payout of up to 153,291.

Tom Wood, finance director of the Derbyshire, is set to leave the firm three months after the merger is finalised on December 1 and will receive a payout of up to 322,312.

But the mutual’s specialist lending director Brian Carney and retail director Andrew Thorpe will leave as soon as the merger is ratified, walking away with 290,327 and 258,209 respectively.

A spokesman from the Derbyshire says: “The directors are not going to receive any merger bonuses. These payments are legal entitlements under their contractual obligations.”

A spokeswoman for Nationwide says: “The payments to the directors are no more than the legal and statutory obligations to which they are entitled.

“Under the Building Societies Act 1997, directors aren’t allowed to receive a bonus for mergers.

She adds: “Remuneration committees from the Derbyshire and the Cheshire decided the level of remuneration and this decision had nothing to do with us.”