The new boss of Ladbrokes was today handed a £12 million free bet on the "reinvigoration" of the UK’s biggest bookmaker.

Richard Glynn, who is joining the company from spread betting firm Sporting Index, will be entitled to four million shares, potentially worth £11.9 million if the Ladbrokes share price doubles to 297p.

The company said £1.3 billion of value will have been created for shareholders if the "extremely stretching" targets are met over a five-year period.

Mr Glynn will need a price of at least 200p for a quarter of the shares to vest - earning him £2 million.

Ladbrokes said it was impressed by Mr Glynn’s "entrepreneurial energy" after nine years leading the expansion of Sporting Index.

Mr Glynn will take up the position on April 22 and succeed Chris Bell, who is due to leave in the summer after nine years at the helm.

Ladbrokes chairman Peter Erskine said Mr Glynn’s transformation of Sporting Index into a leading spreadbetting firm made him "ideally suited to lead the reinvigoration of Ladbrokes".

The change at the top follows significant changes in gaming regulations, including the 2007 Gambling Act, as well as the rise in online betting and the diversification away from horse racing.

Mr Glynn, who is 45, has been chairman of Sporting Index since May 2008, having been chief executive from 2001.

He will receive a base salary of £580,000, plus £130,000 in lieu of a pension contribution. Mr Glynn will also be entitled to £1.75 million of shares in recognition of current pay and shares interests which he will lose on taking up the new role.

He said he was proud to be joining Ladbrokes: "It is a great business with significant opportunities in a rapidly changing marketplace."