Aim-listed advice firm Frenkel Topping has launched a share incentive scheme which could see three directors collectively awarded up to 9 per cent of the value of a sale of the business.
The scheme will provide a return to directors David Southworth, Richard Fraser and Julie Dean if the business is sold for more than £25m.
The payout ranges from 1 per cent of the business value for a sale between £25m and £27m up to 9 per cent of the business value in the event of a sale for over £38m.
Such a sale would see Southworth awarded 15 per cent of the proceeds with Fraser and Dean both given 42.5 per cent.
Frenkel’s share price currently stands at 31.5p valuing the business at £19.92m. The price has risen 73 per cent over the last 12 months from 19p in January 2013.
The firm was valued at its lowest in February 2009 when the share price fell to 1.25p.
Frenkel managing director Richard Fraser says: “We are a growth business and we have seen our share price rise significantly over recent months and we see this as the next step in our expansion.”
Astute Wealth Management director Andy McLaughlin says: “This kind of deal is obviously good for the directors in the event of a sale but they really need to consider the effect of any sale of the business on their clients.”
Frenkel maximum percentage payout per acquisition value:
|Value of Exit Event||Max payable|
|£25m – £27m||1%|
|£27m – £28m||2%|
|£28m – £30m||3%|
|£30m – £31m||4%|
|£31m – £33m||5%|
|£33m – £34m||6%|
|£34m – £36m||7%|
|£36m – £38m||8%|