Quindell deputy chairman resigns post at Financial Reporting Council


share prices

Code said options should not vest for three years

Jim Sutcliffe, appointed deputy chairman of alternative business structure Quindell earlier this month, has resigned from the board of the Financial Reporting Council (FRC).

Mr Sutcliffe, who was chair of the FRC’s codes and standards committee, was given 10.9m share options in Quindell when he accepted the posts of deputy chairman and strategy director earlier this month.

The FRC’s corporate governance code states, in a schedule on remuneration of directors: “In normal circumstances, shares granted or other forms of deferred remuneration should not vest or be paid, and options should not be exercisable, in less than three years. Longer periods may be appropriate.”

Mr Sutcliffe’s options vest on different dates – all of them within a year.

Until now, corporate governance concerns at the AIM-listed company had centred on new non-executive chairman Richard Rose, who received over 8m in share options.

Under the Quoted Companies Alliance (QCA) corporate governance code, which applies to AIM-listed companies, non-executive directors “do not normally participate in performance-related remuneration or have a significant participation in a company share option scheme”.

The code said that on the rare occasion where performance-related remuneration was under consideration, “shareholders must be consulted and their support obtained.”

Like Mr Sutcliffe, the 8.7m options awarded to Mr Rose vest at various stages over the next year.

Announcing the departure of Mr Sutcliffe, FRC chairman Sir Win Bischoff thanked him for his commitment and service to the board and his “effective leadership of the codes and standards committee and before that the board for actuarial standards of the FRC.”

On its website, Quindell said its directors recognised the importance of sound corporate governance and “have regard to the corporate governance guidelines for AIM companies published by the QCA”.

Tags:




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Reports

Our latest special report, produced in association with Temple Legal Protection, looks at the role of after-the-event (ATE) insurance in commercial litigation post-LASPO. We are at a time when insurers, solicitors, clients and litigation funders work ever more closely to create funding packages that work for all of them, with conditional fee and even damages-based agreements now part of many law firms’ armoury.

Blog

18 October 2019

Will your staff have confidence in your compliance officers?

The introduction of the SRA Standards and Regulations on 25 November 2019 will see new issues coming into focus for you and your firms over the reporting of serious breaches to the SRA.

Read More

Loading animation