Pay revolt hits Hargreaves Lansdown

Nearly 25% of shareholders failed to back directors' pay deals at financial adviser Hargreaves Lansdown. The revolt was worse than the numbers suggest, as 52% of the Bristol-based company is controlled by founders Peter Hargreaves and Stephen Lansdown. After their holdings are taken into account, it means the rebels garnered slightly more than half of the free float, making it one of the biggest votes against boardroom pay levels. Before the meeting shareholder activist group Pirc advised investors to vote against the pay deals because of concern "surrounding the operation of long-term plans which have no performance conditions or maximum award limits". It said: "During the year, the chief executive [Ian Gorham] was awarded options worth 12.7 times his base salary. Average CEO pay is at the top of the sector." Pirc added that directors' contracts were on a 12-month rolling basis but there was "no explanation of the company's liabilities on termination payments". Hargreaves built the business with Lansdown from a spare bedroom in his Bristol flat in 1981 and scooped £80m when the firm floated with a price tag of £800m in 2007.