FINANCIAL analyst Moneyfacts has attacked the 60 per cent bonuses being promised to bosses at Portman Building Society, which is facing a takeover by Nationwide.

But Bournemouth- based Portman - Britain's third largest building society - is strongly denying that the bonuses are linked to the merger.

The 60 per cent bonuses are pro rata, member-approved and listed at the same rate as last year, it says.

Industry analyst Moneyfacts says: "The Portman-Nationwide merger documentation is vague, to say the least, as to the exact payments that will be made to outgoing executives, particularly to Robert Sharpe, the chief executive."

There was growing concern "that the biggest winners of building society takeovers may be the outgoing executives rather than the members" said a Moneyfacts spokesman.

"If that is true, it isn't what most people thought mutuality was supposed to be about."

Portman's 1.2 million eligible members have been voting on the planned merger ahead of the society's AGM at the Lighthouse, Poole on April 23.

If the merger went ahead, qualifying members would receive windfalls of between £200 and £1,000.

But around 250 local jobs would be lost and 10 local branches would close.

Portman strenuously denies that the bonuses are linked to the merger.

A Portman spokesman said the 60 per cent bonuses would be paid pro rata up to August 28, the expected date of the merger if it went ahead.

But they were not connected with the merger.

They were performance bonuses approved by members at the last AGM.

"The payments are in accordance with the contractual and statutory entitlements.

"There is nothing in addition," said the spokesman.

Bonus payments were based purely on performance.

Portman had a "fantastic year" in 2006 with assets passing £21 billion.

Savings and residential lending both rose by 18 per cent.

The spokesman also denied Moneyfacts' allegation that the merger documentation was vague.

It had been approved by City regulator the Financial Services Authority after extensive checks, he said.

Bosses: payouts and merger moves

  • Portman chief executive Robert Sharpe, who is leaving the society, is set to receive a pro rata bonus worth up to 60 per cent of his basic salary.

Last year that was £347,000. His total remuneration was £594,000. It included a 60 per cent bonus of £208,000, other benefits of £24,000 and a pension increase of £15,000.

  • Executive directors Matthew Wyles (2006: £432,000) and Tony Prestedge (2006: £430,000) would become Nationwide directors at a higher rate of pay and each also receive bonuses worth up to 60 per cent of their basic salaries.

For other directors, the position varies:

  • Portman chairman Bill Tudor John would become joint deputy chairman of Nationwide and receive fees higher than those at Portman. Last year he received £62,000.
  • Finance director Mark Gibbard would step down from Portman on April 30 and would later join Nationwide as a divisional director at the same level as his Portman salary (2006: £199,000).

He would also receive benefits in line with a Nationwide divisional director.

His total remuneration, including benefits, at Portman last year was £403,000.

  • Non-executive directors Mark Nicholls (2006: £38,000) and Sue Ellen (2006: £34,000) would each become non-executive directors at Nationwide, receiving higher fees.
  • Other non-executive directors would enter into six-month consultancy agreements with Nationwide, being paid at their Portman rate.
  • Another Portman non-executive director, former Lambeth Building Society chairman Richard Vaughan (£10,000), would remain in place until September 30.