Hargreaves Lansdown chief executive Chris Hill could pass up his bonus until the current suspension of the Woodford Equity Income fund is resolved, according to the Daily Mail.
The paper quotes inside sources as saying that Hill, whose bonus could be up to £2.1m, has volunteered to forgo the payment after Hargreaves came into criticism for featuring the fund on its Wealth 50 list of top picks.
Hargreaves has already launched a review of how the Wealth 50 makes its selections, but the Mail now reports that Hill will only take his bonus when the Woodford Equity Income fund is reopened, so could miss out on this year’s annual entitlement.
Sources told the paper that Hill said he did not want to benefit from an additional bonus while the 80,000 customers who invested in Woodford through Hargreaves were inconvenienced.
Fees for Hargreaves clients’ investments in Woodford were waived by the firm, but at the time of writing Woodford had not followed suit.
Meanwhile, the Times also reports that another key player in the Wealth 50, Lindsell Train, holds an 11 per cent stake in Hargreaves, making it the broker’s second-largest shareholder.
The paper says the data will throw yet more spotlight on the nature of Hargreaves’ ties with its favourite managers, as both the UK and global equity portfolios of Linsell Train are promoted through its Wealth 50 list, but also hold Hargreaves shares, and some multi-manager products Hargreaves offers also feature the Lindsell Train funds.