PHILIP Bowman, who has been chief executive of ScottishPower for 13 months, is in line to receive £4m in cash and shares when the giant utility surrenders its independence to Iberdrola of Spain.
The offer document for the proposed takeover confirms that Iberdrola intends to honour the terms of Bowman's contract, which The Herald revealed last April included detailed provisions to protect his financial position in the event of a takeover.
In November, Bowman declined to shed light on estimates that his golden parachute, in salary, bonus, payments in lieu of pen- sion contributions and share incentive plan entitlement, might be between £3m and £4m.
The document shows that Bowman is entitled to receive a year's salary of £700,000, a bonus of £1,050,000 and £300,000 in lieu of pension contributions.
He owns shares worth £1.9m based on the Iberdrola offer. This values Scottish- Power shares at about 800p each and the company at around £11.8bn.
The package will mean that Bowman has collected pay-offs worth around £20m as a result of the sale of companies he has been running within the last two years.
In the run-up to the completion of the £7.4bn sale of Bowman's previous charge, drinks giant Allied Domecq, to Pernod Ricard of France in 2005, it was reported that he could be in line for a pay day of £17.6m.
The Observer newspaper reported that ScottishPower finance director Simon Lowth would also receive a year's salary (£460,000) and a bonus of the same amount if he left following the takeover by Iberdrola. Lowth has shares worth around £2.7m.
ScottishPower share- holders will get the chance to vote on the agreed deal at a meeting in Glasgow on March 30.
A spokesman noted that the arrangements for payments to Bowman in the event of his leaving ScottishPower had been detailed in the group's annual report.
The terms would not be enhanced as a result of the takeover by Iberdrola.
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