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Lighthouse shareholders oppose director pay and bonuses

Around a third of Lighthouse shareholders have voiced disapproval of the Aim-listed network’s bonus and director pay proposals on the back of the latest company accounts.

In March, Lighthouse posted pre-tax losses of £1.6m whilst setting aside £310,000 in redress.

The accounts included a cumulative bonus of £90,000 for chief executive Malcolm Streatfield and finance director Peter Smith and total emoluments for the pair of £569,000, up 39 per cent from the previous year.

Money Marketing understands a number shareholders amounting to over 30 per cent of the company have said they are opposed to the plan.

Shareholder Simon Taylor-Young says: “I am not sure yet another loss qualifies as superior performance. It is also interesting in the context of no dividend. The group are currently restricted by the FCA from making any distributions to shareholders. A dividend of 0.1p, to give a yield of 3 per cent, would cost just £127,000 but is currently restricted.”

The Lighthouse annual general meeting will take place tomorrow in which the shareholders will be required to sign off the accounts, although they cannot vote specifically on directors’ pay or bonuses.

In July 2012, Lighthouse failed in an attempt to delist from the Aim market after 53 per cent of shareholders voted against the proposal. The firm proposed to delist from Aim but required 75 per cent of shareholders to vote in favour to push through the proposal.

Former joint chief executive Allan Rosengren has the highest shareholding with 14.7 per cent.

Paul Chase-Gardner has a 5.4 per cent stake and Cavendish Asset Management senior investment manager Paul Mumford has a 5 per cent shareholding through his Aim fund. Private investor Julian Telling holds 5.14 per cent of shares.

The Lighthouse board owns around 3 per cent.

Other shareholders include LV=, with 6.5 per cent, Friends Provident with 5.9 per cent, Skandia Life Assurance with 4.8 per cent and Kames Capital with 3.5 per cent.

Lighthouse was unavailable for comment.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Joseph Egerton 13th May 2014 at 12:35 pm

    The proposal to pay bonuses is a scandal when such large sums are being set aside for compensation. The FCA should surely intervene – it cannot allow the directors to take large sums out of a business when it has had to prohibit payment of dividends.

    I hope that all your readers will also look at yesterday’s story about the increased provisioning for complaints.

    The shareholders surely have no reason to worry about the usual reason for granting bonuses – those refused “recognition” will walk out. The exit of the present management should send share prices up, not down.

  2. Ex- Lighthouse 14th May 2014 at 10:25 am

    Wow!That rubs salt in the wounds! So many of us tossed on the rubbish heap, the Company has huge financial obligations yet Malcolm and Peter get a hefty bonus each on top of a monstrous salary. Words fail me.

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