Newton staff in line for 125m payout

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The price Mellon Financial Corporation will pay for the remaining 25% of Newton Investment Management is 175m (€290m), according to industry sources.

Of this, 125m will be shared between 100 staff in July 2001.

Ten months later Stewart Newton, the founder, will receive 35m while seven other senior Newton executives will split 15m between them.

None of the payments are dependent on the staff or executives continuing their employment with Newton, nor are loyalty bonuses being offered to employees to retain them after the payments have been made.

Mellon announced last week that it had decided to exercise its option on the remaining Newton shares one year early, but declined to reveal the amount. It would not comment on the figure of 175m.

Mellon's rationale for advancing the purchase date is that Newton's growth has already reached expectations.