REG - Hargreaves Lansdown - Directors' Remuneration Report 2018 - Correction

Hargreaves LansdownAnnouncement

25/09/2018 11:05

RNS Number : 8647B
Hargreaves Lansdown PLC
25 September 2018
 


 
25 September 2018
Hargreaves Lansdown plc
Directors' Remuneration Report Correction
Further to the publication of the 2018 Report and Financial Statements (the "2018 Annual Report") for Hargreaves Lansdown plc (the "Company") on 30 August 2018, the Company  announces that there is an error in the 2018 single figure of remuneration table on page 78 for Chris Hill, Chief Executive Officer of the Company, within the Directors' Remuneration Report. This error has also been reflected, in part, in the corresponding information in the Directors' Remuneration Reports in the Report and Financial Statements for the years ended 30 June 2017 and 30 June 2016 (the "2017 Annual Report" and "2016 Annual Report" respectively).
We apologise for this error, which primarily relates to the treatment of Chris Hill's buy-out awards upon joining Hargreaves Lansdown. We have set out below the original and corrected figures, with further details set out in the Notes to Editors of this announcement. There is no impact on the Company's profit, balance sheet, earnings per share or other audited financial information in the 2018 Annual Report.  The Company's auditors have reviewed the error and have agreed with the position of the Company.
The original disclosed amounts for Chris Hill in each of the years are as follows:




 
All figures in
£'000s
Name of Director


 
 
 
Year


 
Gross
basic
salary


 
Other
cash
benefits


 
 
Cash
bonus


Deferred
element
of bonus
shares


Gain on historic
options
vesting


 
 
 
Pension


 
 
 
Totals




Chris Hill


2018


600


23


1,020


680


164


11


2,498




Chris Hill


2017


503


5


825


550


344


6


2,233




Chris Hill


2016


179


-


263


112


-


4


558




 
The corrected amounts for Chris Hill, with new columns added to show the effects of each change individually, should be:




 
All figures in
£'000s
Name of Director


 
 
 
Year


 
Gross
basic
salary


 
Other
cash
benefits


 
 
Cash
bonus


Deferred
element
of bonus
shares


 
 
Buy-out
award


 
 
LTIP award


 
 
SAYE
awards


 
 
 
Pension


 
 
 
Totals




Chris Hill


2018


600


23


1,020


680


-


120


-


11


2,454




Chris Hill


2017


503


5


825


550


-


-


-


6


1,889




Chris Hill


2016


179


-


263


112


494


-


5


4


1,057




 
Contacts:
Hargreaves Lansdown                                                      
For media enquiries:                                                                For analyst enquiries:            
Danny Cox, Head of Communications                       James Found, Head of Investor Relations
+44(0)117 317 1638                                                               +44(0)117 988 9898
 
 
Notes to Editors
Following his appointment to the Board of Directors as Chief Financial Officer in February 2016, Chris Hill was awarded three tranches of share awards. Two of these awards were nil-cost options awarded under an arrangement to which Listing Rule 9.4.2 applies in respect of the buy-out of the share option arrangements he forfeited on leaving his previous employments (together, the 'Buy-Out Awards'). The Buy-Out Awards were previously disclosed in the Directors' Remuneration Report of the 2015 Report and Financial Statements. The third award was made under the Hargreaves Lansdown Unapproved Share Option Plan 2012 (the "LTIP Award"). The LTIP Award was made in line with that made to other Directors/PDMRs in October 2015, with the number of shares under award pro-rated for the period of time Chris Hill was employed during the performance period. The grant of the Buy-Out Awards and LTIP Award was disclosed in an RNS announcement to the market dated 4 March 2016.
The Buy-Out Awards, given that they were nil-cost options with no performance criteria, should have been recognised in the single figure table of remuneration within the 2016 Annual Report at grant, however they were incorrectly recognised in the 2018 Annual Report and 2017 Annual Report based on the dates at which Chris Hill exercised the awards. The amount that should have been recognised in the 2016 Annual Report was £493,608, being the 39,300 combined total of the two share awards multiplied by the share price at the date of grant, which was £12.56. The amounts recognised in the 2018 Annual Report and 2017 Annual Report in respect of the Buy-Out Awards should have been nil. 
The LTIP Award had a performance period ending 30 June 2018. The estimated gain on the vested shares under the award based on the performance criteria should have been included in the single figure table of remuneration within the 2018 Annual Report under the column 'LTIP' but had been omitted in error. The amount which should have been recognised in the 2018 Annual Report is £120,048, being the 19,680 shares vesting multiplied by the average daily closing share price for the quarter ending 30 June 2018 of £18.66 less the exercise price of £12.56.
Chris Hill also participated in the 2016 grant under the Company's Save As You Earn Plan, and therefore an amount of £4,638 also should have been recognised in the 2016 Annual Report in respect of the 1,750 options granted in April 2016.
 
 
 




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