StanChart makes £3.2m pay-off

BANKING group Standard Chartered is to pay ousted chief executive Rana Talwar up to £3.2m in compensation for his early departure last November. The agreement has taken four and a half months to reach and will be reduced if Talwar takes another job before August.

In 2000, Talwar's last full year of employment, he cost Standard Chartered £2.1m, comprising pay and bonus of £1.5m, expatriate benefits of £336,000 and a contribution of £292,000 to his pension pot.

The former chief executive was on a two-year contract, theoretically entitling him to £4.2m in total. Under today's deal, Talwar will receive £2.56m of his pay-off in instalments - £590,000 in May followed by five sums of £394,459 until August 2003. If he finds another job between now and then, he will be obliged to pay back any difference between his new salary and the amounts yet to be paid.

He will also receive about £700,000 in expatriate and other benefits and a bonus of £200,000 for last year. In 2001 he was paid £636,000 and expat benefits of £268,000.

Talwar has been replaced as chief executive by Mervyn Davies. A replacement is still being sought for chairman Sir Patrick Gillam.