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Miton unveils plan for retaining star managers
by Robert St George on Oct 23, 2013 at 07:34
Fund managers at Miton are to be offered shares in the company in return for hitting performance targets to dissuade them from leaving, the firm has revealed.
Under the scheme, stars such as Citywire Selection manager Martin Gray and veteran Gervais Williams (pictured) will be rewarded through stock if they succeed both in growing assets under their management and in doing so profitably.
‘The board has decided that it would be appropriate to introduce a new retention and incentive arrangement,’ Miton’s executive chairman Ian Dighé told shareholders. ‘The success of the group will largely depend on its ability to retain, attract and motivate high-quality individuals. The plan will allow successful participants to share in the growth of the relevant profit and assets under management for which they are responsible.’
Under the programme, managers will receive shares in a newly created entity – called Miton Group Service Company – which can be exchanged for shares in Miton proper after a vesting period of three years if they grow their assets at a profit.
Miton is seeking its shareholders’ approval to use up to 20% of its current issued share capital for this plan, although Dighé added that ‘in normal circumstances’ he expected the number of shares actually deployed through the scheme to be ‘significantly lower’.
The company confirmed that it would not exchange cash for shares in the new entity, but advised that it could use its cash reserves to buy back main Miton shares in order to exchange them for the new shares.
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