Hargreaves' boss Gorham sells £3.3m stake

The chief executive of Hargreaves Lansdown has sold an interest in its shares worth just over £3 million, but immediately chose to recycle the sale's proceeds back into the Bristol-based firm.

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by Sarah Miloudi on Dec 13, 2012 at 11:09

Hargreaves' boss Gorham sells £3.3m stake

Hargreaves Lansdown's Ian Gorham has sold shares in the discount broker worth £3.3 million - but immediately recycled the proceeds back into the company.

Gorham, Hargreaves' chief executive, carried out the sale on Monday when he exercised an award under the broker's joint share ownership plan.

The scheme allows directors to buy the right to the growth in value of Hargreaves' shares and Gorham (pictured) took this offer up at the end of 2009 when the Bristol-based broker traded at 268.8p.

Since then, Hargreaves' shares have soared as it grew from strength to strength and raced its way into the FTSE 100, and between December 10 and December 12 Gorham sold the shares at 714.8p each, netting 447p per share as a result of the transaction.

Hargreaves Lansdown said Gorham had at the same time decided to buy 225,000 of the firm's shares.

He snapped up the ordinary shares for 714p each in a stake that represents 0.05% of the shares in issue.

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4 comments so far. Why not have your say?

Truly I say unto you, to those that have it shall be given.

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It' will be all change under RDR when they have to come clean on the undisclosed commission they have been receiving to promote specific funds. I predict that they will lose a lot of business and therefore profit when everything comes to light.

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I have to wonder if, had the value of the shares fallen an equivalent amount to that which they inceased, would Ian Gorman have paid £3.3 million of his own money back into the company? If not, why not?

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Alan Taddersley-Frederik via mobile

Dec 17, 2012 at 23:10

HL are not going to be affected by the imminent RDR regulations actually Alan as they would already comply. Maybe down the line but they seem a way off (2014 at the earliest) from being implemented.

Valid point though...

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