Big payoff for ex-transport boss

THE former deputy chief executive of FirstGroup has been given a £1m payoff after quitting the bus and train operator. Tony Osbaldiston headed FirstGroup's operations in America, where it is the second-biggest provider of student transport.

He left in November after seven years with FirstGroup, saying that with a young family he no longer wanted to divide his time between the US and Britain.

Osbaldiston, a former finance director of FirstGroup, had a 12-month contract. His payoff included £680,000 for 'accrued and prospective salary and bonus entitlement', according to the firm's annual report.

He also picked up £193,000 in pay and £101,000 in lieu of pension contributions. Four other FirstGroup directors shared bonuses totalling £387,000 last year, even though pre-tax profits fell from £137m to £110m. Highest paid was chief executive Moir Lockhead, whose total package was £494,000.

FirstGroup, based in Aberdeen, is Britain's biggest bus company and also operates three train routes - Great Western, Great Eastern and North Western.