dundon thomas

Santander has agreed to pay Thomas Dundon, the former head of its US sub-prime auto lending business, Santander Consumer USA, more than $700m in an exit deal which has taken over two years to agree.

Dundon, who founded the company in 1995, left the auto lender in 2015 after a series of clashes with regulators.

At the time, Santander indicated he could be in line for almost a billion dollars in severance and compensation for his stake in the Dallas-based subsidiary.

According to a regulatory filing with the Securities and Exchange Commission, the bank has now agreed to pay Dundon $942m for his stock and $66m in severance.

For his part, Dundon will repay a $290m loan to the company, plus interest of $5m, bringing his net proceeds to $713m, before taxes.

Dundon has also given an undertaking not to compete with, or hire anyone from, Santander Consumer until 2019.