Fund stars to get lock-in equity share
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Gartmore has awarded 3.5 per cent of the company’s equity to leading members of staff in a bid to lock them into the business.
The firm has been hit by the recent departures of leading fund managers Guillaume Rambourg and Gervais Williams. Gartmore’s share price fell after it floated at the end of 2009 and, in June, Rambourg became the subject of an FSA investigation.
According to The Telegraph, the share award has been made to a mixture of portfolio managers and senior management at the company and will mature over a number of years. At Friday’s closing share price, the equity was worth £13.5m.
It is understood that the board is considering extending the scheme, with a second award under discussion by the company’s remuneration board.
Gartmore is also believed to be targeting leading managers to add to the company, with a least one more set to be added before the end of the year. A multi-million-pound consumer advertising campaign is understood to be in the planning stages.
Last month, the company revealed that its assets under management had fallen to £20.3bn, after redemptions of £1.9bn in the first seven months of this year.
Whitechurch Securities managing director Gavin Haynes says: “We are happy to see this as it is always important to incentivise fund managers.
When turnover is high, it is important that the group does all it can to improve stability.”
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