MITCH GARBER is this week expected to be named as the new chief executive of Party Gaming, the online poker company, on a potential £9m a year pay-and-share-options package that will make him one of Britain’s best-paid bosses.

Garber, who has just stepped down as executive chairman of Fire One, the online payment firm, is understood to have agreed in principle to become chief executive, succeeding Richard Segal.

The appointment has to be ratified by the full board, which is scheduled to meet to discuss it this week. Assuming there are no last-minute hiccups, he will be named as the new boss before the end of the week.

City sources said that Garber, 41, would be likely to receive a similar pay and benefits package to that enjoyed by Segal, who announced his intention to quit last month.

That would see him collect an annual basic salary of £585,000. He would also be granted a lucrative share-options package that could see him awarded about 7m shares a year for the next three to four years, subject to him meeting performance targets.

Any options granted would be “nil paid”. That means he could cash them in at the share price when they are awarded. At today’s share price of 122Åp, 7m options would be worth £8.6m.

Segal, whose share-option awards did not require him to hit performance targets, received £30m from Party Gaming. He spent less than two years with the company.

Garber’s options would be awarded from a £200m pool created by Party Gaming’s four founders and intended solely for current and future staff. That would ensure existing investors are not diluted by the award.

Garber, who is Canadian, will have to relocate to Gibraltar, where Party Gaming is based, and is expected to receive payment for the costs associated with moving his family.

Party Gaming is also likely to have to buy out any remaining share options Garber has in Fire One and its 76% shareholder, Nasdaq-listed Optimal Group.

Securing Garber will be seen as a coup. He is a respected executive in the online gaming industry, and had been courted by a number of rival firms.

One leisure analyst said: “He ticks all the boxes. He knows the online gaming sector, he knows about payments, he is good operationally and he is willing to move to Gibraltar.”

Garber also has a legal background, which will be useful in tackling the regulatory issues surrounding the company.

Segal resigned because he did not want to live full time in Gibraltar. He has been commuting, leaving London on Mondays and returning on Fridays.

A spokesman for Party Gaming declined to comment on Garber. He said: “The appointment of a new chief executive is a matter for the entire board, which is going through a full and proper recruitment process. An announcement will be made when appropriate.”

Garber could not be reached for comment.