Former SMG chief executive Andrew Flanagan was handed a pay-off of £831,024 after being ousted last year.

This comprised £649,600 in compensation for loss of office, the Scottish media group's annual report reveals, together with the release of awards worth £181,424 under the company's long-term incentive and performance share plans.

Flanagan, who led SMG's breakneck growth into a mini-conglomerate in 1999-2001, was ousted last July. Chairman Chris Masters and five other board members followed him out of the company nine weeks ago.

Unveiling the annual results on April 12, new chairman Richard Findlay slammed the predecessor board's strategy as fatally flawed and badly executed, leading to "excess debt, a lack of focus, instability in the leadership, dissatisfaction among the shareholders and poor staff morale".

Flanagan can console himself with the fact that he earned more than £1.1m from SMG in 2006 after working only six-and-a-half months of the year before stepping down on July 18. This included £257,000 in salary for the period, plus benefits of £50,000 comprising car, medical insurance and pension supplement.

On top of that, his severance deal included a payment of £555,600, representing 12 months' salary and benefits in lieu of notice. Surprisingly perhaps, he also got a £44,000 bonus.

SMG's remuneration committee stresses in the report that it was legally obliged to pay Flanagan the bonus, equivalent to 10% of the maximum for the period, had he stayed. SMG's bonus plan for executive directors guaranteed him that percentage under a clause activated during a salary freeze in 2006 "to create confidence in, and give credibility to the bonus plan".

In 2007 the guaranteed element of the bonus plan was scrapped.

A further £50,000 was added to Flanagan's compensation package because he agreed to waive all statutory and further legal rights against the company.

Former television chief Donald Emslie, who left last month after eight months as acting chief executive, was paid a total of £361,135 last year, including a £24,000 performance bonus. The total included £45,000 for the extra responsibilities he took on when Flanagan left. Emslie also received LTIPs with a cash value of £173,775.

He also was paid one year's severance, the details of which will be disclosed in the 2008 annual report.

George Watt, the finance director, got £250,970 in 2006, including a £12,240 bonus, plus LTIPs with a cash value of £147,709.

SMG's new board announced last month that it intended to cut its losses on its much-criticised £225m purchase of Chris Evans's Ginger Media Group seven years ago with a planned flotation of Evans's prize asset Virgin Radio, which could raise £80m. New chief executive Rob Woodward also announced that the sale of loss-making cinema advertising group Pearl & Dean will be pushed ahead, but the exit from outdoor advertiser Primesight has been halted for now because it has dragged on for so long.

SMG's full-year adjusted pre-tax profit fell from £20m to £10m, on revenue down 8% at £147m. The group has renegotiated its £180m debt facility.

SMG also disclosed that it is reviewing its remuneration policy for the new board.