The much publicised dispute between Alliance and Leicester and ousted chief executive Peter White has been settled out of court.
The deal is allegedly worth £1.9m in straight cash, substantially more than the £1.05m originally offered by the bank and turned down by White.
White had initiated legal action, suing the company for unfair dismissal. It is thought by industry sources that the bank wanted to avoid a potentially embarrassing court case.
In addition to the cash, White had demanded to be allowed to retain the share options he had been granted while employed with Alliance and Leicester. The bank relented on this point too, upping his pension package to £586,000.