Lone Star directors to get €1.1Bn fat cat bonus from Novobanco sale – CEO and chairman to be paid out “millions”

The US fund Lone Star is to distribute bonuses of around €1.1Bn to directors involved in the sale of Novobanco.

They will get the bonus as soon as the €6.4Bn sale deal to French banking group BPCE is signed off.

According to the news source Público, the calculation of the bonus value takes into account the relevance of each individual in the Lone Star value chain and their parti in the success of the business.

The founder and president of Lone Star – a vulture fund that typically takes on distressed assets, fixes them, repositions them and sells on at a profit – John Grayken will get the lion’s share, followed by the current CEO, Donald Quintin, as well as kambiz Nourbakhsh, Benjamin Dickgieser (Novobanco financial director) and Evgeniy Kazarev.

The bonuses handouts takes into account Lone Star’s value chain, which is based on the remuneration of its directors according to different criteria from those used for Novobanco executives and for the independent members of the General and Supervisory Board (CGS).

At the same time, both the chairman of the board Byron James Macbean Haynes and the CEO of Novobanco Mark Bourke will receive bonuses of a few million euros, unlike the staff of the North American fund sitting on the CGS, who will have much larger bonuses.