Geddes bonus details revealed as bank-owned insurer announces ambitious plans to transform the business

RBS Insurance chief executive Paul Geddes will receive a remuneration package worth up to £1.9m if he hits performance targets.

Last year RBS Insurance made a £295m loss. The business was forced to pump in around £868m of reserves over the last two years.

The bank could also help with a relocation package. Geddes is looking to sell his Scottish home, reported to be worth £2.85m.

Geddes is planning to set up home near the RBSI offices in Kent.

Geddes package will see him pocket a £400,000 annual performance payout and £1.5m worth of shares maturing in three years based on achieving targets.

Details of Geddes’ package come as RBS Insurance today revealed ambitious plans to make a return on equity of greater than 20% by 2013.

Last year RBSI – which includes Direct Line, Churchill and Privilege – made a 7.9% negative return on equity.

RBSI has launched a range of price matching and deals across the group – including it’s commercial insurance arm NIG – as it gears up for an EU enforced sale in 2013.

An RBS Group spokesman said it was routine practice to help with relocation packages.

The spokeswoman said: “RBS has procedures to help all members of staff who are required to relocate. The terms of these are similar to those offered by other major companies.”