Exchange under fire over bonus

DAVID HELLIER The Stock Exchange is under fire from member firms over its refusal to disclose the basis on which Michael Lawrence, the chief executive, has been paid a bonus, thought to be around pounds 100,000.

The row comes at an embarrassing time for Mr Lawrence, who last week castigated the Treasury for failing to disclose sensitive information at the time of the pounds 4bn sale of shares in the electricity generators in March.

Stock Exchange users, who contribute to the institution's revenue, want to know how Mr Lawrence's bonus payments are calculated and who the members of the committee were who took the decision to award them.

A draft copy of the Stock Exchange annual report shows that the exchange intends to pay Mr Lawrence a pounds 100,000 bonus, which takes the overall remuneration package for his first year in the job to about pounds 422,000.

The draft report also shows that the exchange intends to pay Giles Vardey, markets developments directior, a pounds 75,000 bonus, taking his overall package to around pounds 230,000.

The row is expected to escalate in the next fortnight, with the publication of the final version of the annual report, although the figures for the executives' remuneration packages could be subject to change.

News of the exchange's intentions caused a stir at a conference of about 300 private-client stockbrokers held in Glasgow two weeks ago. One of those present, Keith Loudon, a senior partner at Redmayne Bentley, private client stockbrokers, said last week: "If the exchange's bonus payments were as reported in the draft of the annual report, the stockbroking industry will want to know who set the targets that had to be achieved to receive such payments and what those targets were."

Mr Loudon was critical of John Kemp-Welch, the exchange's chairman, at the meeting for not answering questions from the floor after the chairman's speech about the future of the exchange.

The Independent has been told that the Stock Exchange board was informed last November that the remuneration committee had "received the objectives of the chief executive and the members of the executive committee". However, the board was not told at that time what these objectives were.

The Stock Exchange declined to say whether its board members had since been informed of the senior executives' targets, although one source said that it would not be usual for the board to know of these targets. They would know about them, however, in the event of an individual not achieving them.

Members of the remuneration committee, one source said, include Donald Brydon, deputy chief executive of BZW, John Bond, group chief executive of HSBC Holdings; Michael Marks, chairman of Smith New Court; Miles Rivett- Carnac, Barings; and Nick Verey (Warburg Securities).

Friends of Mr Lawrence have said that his first full year at the exchange has witnessed a number of successes: the exchange has moved successfully to a new rolling settlement system for share transactions and AIM, the new market for small companies, is due to open next week.

Start your day with The Independent, sign up for daily news emails
News
peoplePair enliven the Emirates bore-draw
Arts and Entertainment
tvPoldark episode 8, review
News
Britain's opposition Labour Party leader Ed Miliband (R) and Boris Johnson, mayor of London, talk on the Andrew Marr show in London April 26
General electionAndrew Marr forced to intervene as Boris and Miliband clash on TV
Arts and Entertainment
Ramsay Bolton in Game of Thrones
tvSeries 5, Episode 3 review
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence