Mr Simon Duffy, the NTL chief executive who replaced Mr Barclay Knapp at the helm of the UK cable operator, is set to be granted stock options currently worth nearly $11 million (€9 million) under the terms of a new employment deal, according to a recent US filing.

A shareholder proxy statement filed with the US Securities and Exchange Commission last week revealed that Mr Duffy, who served as chief operating officer (COO) at NTL before he was appointed chief executive last August, will also receive a retroactive bonus payment under the terms of a three-year contract.

The details emerged just weeks after Mr Duffy said that he had not had time to update his original employment contract.

The contract, which has not been finalised and will not be subject to a shareholder vote, will replace a previous agreement Mr Duffy agreed as COO that expires at the end of 2004.

The revised contract calls for Mr Duffy's base salary to increase from £385,000 (€576,000) to £500,000 and for the chief executive to be awarded 200,000 stock options over three years. The options carry an exercise price of $0.01.

The filing also revealed that Mr Scott Schubert, chief financial officer, was paid more than Mr Duffy in salary and bonus in 2003, excluding the executives' stock options.

Mr Schubert was paid about $1.72 million cash compensation, including $364,356 expatriate benefits, compared with $1.21 million awarded to Mr Duffy.

Separately, NTL also revealed that it paid WR Huff Asset Management, a bondholder group headed by Mr Bill Huff - an NTL board director who controls 15 per cent of the company's stock - $7.5 million in financial and business advisory services.

The monies were paid to him in connection with the closing of a recent bond offering and agreement on a new credit facility. - (Financial Times Service)