Lighthouse Group paid former executive chairman David Hickey £260,000 upon his resignation from the firm following its failed attempt to delist from the Aim market.
Lighthouse proposed to delist from the market in July last year. However, 53 per cent of shareholders voted against the proposal. It required 75 per cent of votes in order to push the motion through.
Hickey resigned the following month.
A statement in the firm’s accounts, published last week, says the proposed delisting cost Lighthouse £314,000, including a £259,000 payment to Hickey.
Lighthouse reported pre-tax losses of £4.6m for 2012, compared with £2.7m losses in 2011, as it set aside £3.9m in costs relating to its 2008 merger with Sumus Group.
The firm spent £1.4m during 2012 on retail distribution review implementation costs. Turnover dropped from £60.4m to £55m.
Lighthouse’s cash reserves fell to £10.5m, down from £11m the previous year.
It says: “The costs include £259,000 paid in respect of the former executive chairman of the group in order to meet the group’s contractual obligations in relation to his departure from the board.”
PMI Independent Financial Advisers director John Stewart says: “This seems like an awful lot of money to be paid for failure and I would have thought shareholders would not be too pleased about it either.”