Everything you need to know…
City broking firm, TP ICAP has approached investors over changes to an incentive plan that could hand out tens of millions of pounds to senior executives.
According to Sky News, directors of TP ICAP proposed establishing a scheme that would have paid out £85m over a three-year period.
John Phizackerley, the company’s chief executive, stood to make a maximum of £25m under the Value Creation Plan which was discussed by leading TP ICAP shareholders.
The proposals, which have been drawn up by Stephen Pull, the director who chairs the broker’s remuneration committee, the plan would only start paying out after almost £400m in shareholder value had been created.
One source familiar with the plan said: “This was always presented as a consultation exercise, and the company has listened carefully to what investors have had to say,”
“The opposition to it was far from unanimous.”
The scale of the potential maximum payout of under the scheme was at £85m a significant sum even in the profitable arena of interdealer broking.
The precise number of executives involved in the Value Creation Plan is unclear. Although it is understood that TP ICAP’s chief financial officer Andrew Baddeley, could have received a sum of around £15m in the plan.