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Performance Related Pay – Does it work? It Depends

Evidence from Compass-Capita-Comparison shows performance related pay can work - when measured over the long term. Since 2009, Compass has paid Richard Cousins, its CEO, £43m and Capita paid CEO Andy Parker £15m. According to my rough sums (which ignore the impact of the numbers of shares in issue and dividends and capital distributions), Compass added value of £19bn and Capita lost £1.2bn. They started at similar size £6bn and £5bn respectively. The FT story Richard Cousins steps down as Compass chief executive ...

Dual class share structures: threat or opportunity?

I was interested to read this article in the FT today. It reports that the Hong Kong stock exchange is once more contemplating whether to permit listed companies to have dual class share structures. The exchange has considered this topic several times previously and has historically rejected it and not permitted such structures. In the UK, there isn't an absolute ban but the practice is deprecated and very few companies have such structures, Schroders (SDR/SDRC) being a notable exception. OTOH in ...

Response to Financing Growth Review

The Government is currently consulting on “Financing Growth in Innovative Firms” (otherwise known as the Patient Capital Review). It covers the perceived problems in building world-beating companies from a small size in the UK, and the ways the Government provides support to early stage companies. That typically means the VCT, EIS and SEIS schemes with their associated tax reliefs and other possible “support” programmes where the Government funds them directly. Anyone who invests in this area, directly or indirectly, should respond to ...

Foresight 4 VCT – Big Changes Needed at the AGM

ShareSoc recommends that shareholders vote against the re-election of Raymond Abbott and Michael Gray and against the re-appointment of KPMG. (NOTE: If you have already voted in favour, its not too late to change your vote and resend your proxies. Additional form(s) of proxy may be obtained by contacting Computershare Investor Services plc on 0870 703 6385.) BACKGROUND OF FAILURE Foresight 4 VCT has a litany of past failures in investment performance and corporate governance. It made major £30m errors in several reserves in its accounts ...