Payday for David Duffy at Clydesdale Bank

Former AIB chief executive David Duffy is set to receive shares worth some £1.5 million (€2m) when the Scottish based Clydesdale Bank demerges from Australian financial services group National Australia Bank (NAB) in February 2016.

Mr Duffy, who joined the bank as chief executive in June this year, is to be awarded 150 per cent of his base salary when the bank goes public in early February, according to a prospectus published by the bank. NAB, which previously operated National Irish Bank in Ireland before selling it to Danske Bank, will carve out its UK banking arm by a 75 per cent demerger to existing NAB shareholders, while the remaining 25 per cent will be sold through a flotation on the London Stock Exchange.

Other key executives are also being given stock awards, including finance director Ian Smith and chief operating officer Debbie Crosbie. Both executives will each get £450,000 of stock, while all employees in the bank will receive an award of Clydesdale shares with a value of £500

The prospectus also offers further clarification on Mr Duffy’s package with Clydesdale, which is in excess of what he earned at AIB where he was constrained by the government cap on pay. Mr Duffy joined AIB on a salary of €500,000 in 2011, but later took a 15 per cent pay cut.

Mr Duffy's annual salary with the bank is £1 million, putting him in the same pay bracket as Ross McEwan at Royal Bank of Scotland.

Extras include an annual cash allowance of £180,000 in lieu of a pension contribution; a car allowance of £30,000; and a £35,000 accomodation allowance which will run until June 4th 2016, but may be extended.