THE chairman of the debt-laden company that has a multi-million pound Bournemouth council contract is in line for a £400,000 bonus.

David Shearer will gain a total of £650,000 if shareholders of crisis hit Mouchel agree to a bank funded rescue package later this month.

Mouchel has been at the centre of controversy since taking over the running of several council departments in 2010 in a 10-year-deal worth £150m.

A total of 480 staff were transferred to the company when it took over the reins for revenues, benefits, ICT and facilities management for Bournemouth.

A total of 22 have returned to the council but human resources and financial administrative functions have also left town hall.

Mr Shearer was appointed on January 9 to revive the company as its share value plummeted and debts rose to £147m.

The banks Lloyds, Barclays and Royal Bank of Scotland have agreed to take over control of the company in a “debt-for-equity” swap that will wipe off £87m of the debt and shareholders will gain just 1p per share with the company de-listed.

If that is voted through at a general meeting on August 24 Mr Shearer will gain the £400,000 bonus agreed in his contract.

He will pocket his £150,000 yearly fee for being chairman and a further £100,000 is paid to the consultancy company he set up before being appointed.