Direct Line boss Paul Geddes banks £1.8m after float success

DIRECT Line Group handed chief executive Paul Geddes a package worth £1.86m last year after he guided the insurance business to a successful London float.

The figures were released yesterday in Direct Line’s first annual report since it was spun out of RBS. Geddes was awarded a £760,000 performance-related bonus on top of a £671,000 salary for 2012. He also received pension contributions worth £233,000.

Chief financial officer John Reizenstein took home a total package worth £894,000.

Direct Line’s October initial public offering (IPO) valued the company at £2.6bn and helped restart the moribund market for London floats. Since then the shares have risen 16 per cent and the business now sits just outside the FTSE 100 index.

At the end of last month the firm unveiled a nine per cent rise in year-end operating profits from continuing business to £461.2m. This prompted RBS to sell down its stake in the business to just 49.9 per cent. Direct Line is currently undertaking a cost-cutting plan that will see it reduce annual expenditure by £100m by 2014.