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Hargreaves Lansdown float would churn out the millionaires

The proposed £600 million Hargreaves Lansdown (HL) flotation is likely to make around 15 employees millionaires, including head of research Mark Dampier.

 

The proposed £600 million Hargreaves Lansdown (HL) flotation is likely to make around 15 employees millionaires, including head of research Mark Dampier.

Citywire sources have suggested that when favourable ‘save as you earn’ schemes are taken into account the intermediary firm could create as many millionaires as New Star Asset Management, (NSAM) famed for bringing wealth even to chairman John Duffield’s secretary.

After founders Peter Hargreaves and Stephen Lansdown, who stand to make close to £250 million each, the individual poised to make the most is thought to be group marketing director Mary Theresa Barry.

Citywire understands that Barry, who was the firm’s first full-time employee in 1982, will make £22.2 million if the firm floats at the predicted £600 million.
Next in the pecking order is Adam Norris, managing director of HL’s advisory business. He stands to make £19.2 million.

Mark Dampier, the group’s head of research, stands to make around £1.4 million. The firm has £7.5 billion under administration.

The figures do not take into account ‘save to earn schemes’ which were offered at what are believed to be very favourable rates. The scheme is thought to contain more paper millionaires as the employee benefit trust would hold around £48 million of shares at flotation, based on the shareholdings of employees at the end of November 2006. In total the firm has 600 employees.

Although the flotation has been widely trailed in the press, the firm has stopped short of confirming it will definitely go ahead, despite appointing Lexicon Partners as corporate advisers.

Lansdown said: ‘This is one of the options we are looking at. Hargreaves Lansdown is now 25 years old and is still rapidly growing so we are looking at this as a way of improving our efficiencies and profile.’

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