£200K severance cash for Sprung

27 May 2010 | By Hannah Stodell

Former Park Row chief executive Peter Sprung was handed a £200,000 severance payment by parent company Royal Liver, following his departure from the firm in January.

In February, Sprung, who was CEO of Park Row between January 2007 and January 2009, was fined £49,000 and his FSA approval was withdrawn by the regulator after failing to ensure the firm’s sales were suitable. The FSA ordered Park Row to pay customer redress of between £5m and £7.8m for any unsuitable advice.

Company reports for the year ending December 31 reveal that Sprung received a salary of £174,000 as well as over £20,000 in employer pension contributions and a £10,000 company car provision. He was also paid over £3,000 in commission by Park Row Group.

Royal Liver estimates Park Row closure costs total £15.9m which include redundancy costs and forecast operating losses and customer redress which amounts to £8.3m.

Park Row losses from ordinary activities before redress provisions and closure costs amounted to £8.6m compared with £5.9m a year earlier.

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