NEVILLE Richardson, the former head of the Co-Op’s banking group, agreed a £1.4m compensation payment for loss of office when he quit the group.
He resigned in July last year but received a further £380,000 in payment after agreeing to work until the end of the year.
He decided to take his pension entitlements as a lump sum of £2.1m and, together with another payment, this took his total compensation to more than £4.5m.
Richardson, who came to the Co-Op from the Britannia Building Society, is widely believed to have objected to the group’s attempt to buy more than 630 bank branches from Lloyds Bank. He felt the move would be too soon after the group’s merger with the Britannia, which he felt still needed bedding in.
In the past few weeks there have been increasing concerns about the Co-Op’s ability to satisfy the regulators that it is fully equipped to take on the Lloyds branches.
However, it remains in exclusive talks with Lloyds and while that remains the case executives have not yet given up hope of a deal.