£5m Virgin Money boss could beat HSBC chief

VIRGIN Money’s chief executive could see his pay rocket to £5.1 million in 2020, putting him on a par with the highest-paid bank bosses in Britain.

David Duffy will receive a £1.2 million payment that will include his salary, pension and cash benefits, such as a car allowance.

But he could also pick up £3.9 million in bonus and share-based awards if he meets financial targets for the FTSE250 member. A Virgin Money source said the targets were very difficult to achieve – and that Duffy would have to deliver a share price increase of 50 per cent.

The total would be far more than the £4.6 million paid in 2018 to John Flint, the former boss of global behemoth HSBC, which employs 235,000 staff in 66 countries. HSBC made profits of £15.3billion in 2018. By contrast, Virgin Money UK has 9,667 staff, operates only in Britain and made a loss of £194million.

In 2019, Duffy received £3.4million of a possible £4.2million. He earned the same amount as Barclays boss Jes Staley.

Virgin Money UK was formed when CYBG took over Virgin Money in 2018. The group has rebranded as Virgin and changed its name on the Stock Exchange.

Duffy’s pay triggered a shareholder revolt at the group’s annual investor meeting last year. His 2019 earnings were up 84 per cent on the £1.8 million payout for 2018.

The bank justified large pay rises on the basis that the takeover has increased its size and complexity – and so it must retain its top team.

The best-paid bank boss of 2019 was Santander UK’s Nathan Bostock, who received £6.4 million.