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Hargreaves and Lansdown take £1m pay cuts

Peter Hargreaves and Stephen Lansdown, the two founders of leading investment IFA Hargreaves Lansdown, both took £1m pay cuts last year, even though the firm&#39s profits rose by 10 per cent.

Chief executive Hargreaves and chairman Lansdown both saw their salary fall by over 40 per cent to £1.35m in the year to June 30, 2003 from £2.39m in the previous year. The company saw profits increase by 10 per cent to £49m for the year to June 2003 from £4.9m the previous year, according to figures seen by Money Marketing.

Hargreaves said the pair had decided to take pay cuts to keep profitability on course. They also intended to set aside some cash for the acquisition of an unnamed firm, which did not come off, and for the possible purchase of new premises. The results reveal that Hargreaves and Lansdown share the £302,000 annual rental costs for the firm&#39s Bristol HQ.

The chairman&#39s statement says the highlight of the firm&#39s year was the rapid growth of its pension division, with the Pensions Direct stakeholder retail arm singled out for praise.

Hargreaves says: “The first person to suffer should be the fat cat at the top. If the business needs the money, then the people who can most afford it should be the people who pay.”

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