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Tavistock rethinks exec pay boost after concerns

Financial adviser network and wealth manager Tavistock Investments has postponed a general meeting planned to approve a boost to the earnings of senior executives.

The meeting was due to take place on 16 December but following concerns raised by shareholders has now been called off.

In a Stock Exchange statement Tavistock said: “The board has received feedback on the proposal from a number of shareholders which has highlighted that certain aspects of the proposal could inappropriately favour the interests of the company’s leadership team over those of shareholders in certain circumstances.

“This is counter to the board’s intention and, as a consequence, the board recognises that certain aspects of the proposal need to be amended.”

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The company expressed concern recently that the long term rewards and incentives of company leaders were insufficient to reward them for the growth of the company.

The general meeting was called to seek shareholders’ support for a proposal to replace the existing long-term incentive arrangements for members of the company’s leadership team, including the executive directors Oliver Cooke and Brian Raven, with an alternative long-term incentive scheme.

The company board said it welcomed “constructive engagement” with shareholders and will now “reflect” on these discussions, consult with the company’s advisers and revise the proposal “as appropriate.”

The board will write to shareholders again in the New Year.

Last month the company, which has expanded rapidly in recent years, revealed it was closing a number of offices and axing staff in a £750,000 cost-cutting drive as it prepares to launch its own platform. After a business review, it decided to axe 5 of its 11 offices and has made a small number of senior and junior staff redundant.

Despite the cost cutting the firm said that it was planning to grow and was going ahead soon with plans to launch its own ‘low cost’ platform, The Tavistock Platform, for the group’s advisers.

The group reported revenue for the six months ending 30 September was down 7% from £14.2m to £13.8m. The group made an overall pre-tax loss from operations of £416,000 due to £1.2m in restructuring costs.

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