Ig Design (LON:IGR) : (IG Design Group) New Long Term Incentive Scheme
This appears to be almost a misallocation of shareholders money in my view. The Remuneration Committee, chaired by Elaine Bond, has awarded participants to share, in total, in up to 12.5 per cent. of the value created for investors (the "VCS Pool"). This pool takes a base price for the shares of £4.50 (the shares were over £7 last December but have been low this year due to the Covid crisis, the justification for using a low price) as opposed to yesterdays closing price of £6.10, thus already allocating 12.5% of £154m (the difference in market value at £4.50 per share compared to todays price of £6.10 per share) = £19.25m . So without doing anything the members of the incentive scheme have been given £19.25m. Recipients named are Paul Fineman (value of allocation today = £3.37m), Giles Willits (today = £2.4m) and Lance Burn ( today = £1.44m), which represent 37.5% of the pool.
I am sure all the recipients, including those unnamed, are hard workers and highly skilled, a credit to themselves and the company. However incentive schemes based on falsely low share prices seem immoral to me. Am I being unfair or should we be making a fuss over this? Perhaps I'm being a bit naive.
My opinion is that the scheme should be re-written and the role of Elaine Bond reviewed. I would be interested in others views.
Regards, Peter
