The chief executive at TXU will scoop a $279.3 million (£140 million) windfall when the once bankrupt Texas utility group is sold to US private equity firm Kohlberg Kravis Roberts (KKR) and TPG for $45 billion in the world's largest leveraged buyout.

John Wilder will receive the payment as part of a change of control clause in his contract with the company he was brought in to manage in 2004, as the first externally appointed chief executive in TXU's 120-year history.

On completion of the buy-out, Mr Wilder's share options in TXU will vest immediately, netting him nearly $280 million, according to The Wall Street Journal. Mr Wilder's award adds to a total $17.12 million compensation he was paid in 2006.

TXU's US operation went into Chapter 11 in 2002, while its UK division fell into administration with debts of £4 billion. Since 2003, when TXU's shares crashed to just over $5, the company has emerged from Chapter 11 while its shares have recovered and are now trading at over $60.00.

Last week, KKR and TPG submitted a filing to the Texas Public Utility Commission, the state regulator, detailing their plans for TXU if their takeover deal goes ahead. The two private equity firms have pledged not to pump debt into TXU's electricity division to ensure against price rises.

Since the Texas wholesale and retail electricity market was deregulated, which contributed to TXU's previous problems, energy prices have doubled.

KKR and TPG also detailed plans to give TXU's existing operations more independence from each other. For example, TXU's power generation and retail division will have a separate board and headquarters.

The private equity deal is currently the subject of an informal investigation by the Securities and Exchange Commission, the US regulator, after suspicious trading activity hit TXU's shares prior to the leveraged buyout being announced.

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