Jupiter staff to share pounds 500m

THE 300 staff at Jupiter, the Knightsbridge-based fund manager, are to receive windfalls totalling pounds 500m in the next few days.

The payments from Jupiter's German parent company, Commerzbank, will cover the purchase of the 25 per cent of the company still owned by the employees.

John Duffield, the chairman of Jupiter, and his team of 300 will find out the exact details in the next few days. Mr Duffield is likely to be the biggest beneficiary, standing to net pounds 100m for his 5 per cent stake. Other winners include star fund managers William Littlewood and Edward Bonham-Carter, the brother of actress Helena. The bonuses will be spread across all 300 staff, and even secretaries are expected to get at least pounds 100,000 each.

However Lord Lamont, another Jupiter director, will be spared the wait. As a non-executive, he does not qualify for the scheme.

Mr Duffield is the former husband of Vivien Clore, deputy chairman of the Royal Opera House and daughter of Sir Charles Clore, the founder of the Sears retail chain.

The payouts, which are being calculated at the moment, stem from an agreement hatched in 1995 when Commerzbank paid pounds 169m to acquire 75 per cent of Jupiter. Commerzbank agreed to buy the remaining 25 per cent from Jupiter's staff for a performance-related fee.

Jupiter's profits have since spiralled, topping pounds 117m for the first nine months of this year. Observers believe this strong performance has lifted the value of the employees' stake to at least pounds 500m.

The eye-popping payouts vindicate the decision of Jupiter staff to retain their 25 per cent holding for the last few years. That stake would have been worth just pounds 56m based on Commerzbank's valuation of Jupiter in 1995. Jupiter declined to comment on the size or timing of the payouts.

It is not just the size of its liability that is worrying Commerzbank. Although the German group has attempted to tie in Jupiter's star fund managers until 2002 with a further incentive package, there are fears that once they have been rewarded some will jump ship.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
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

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

As in 1942, Germany must show restraint over Greece

As in 1942, Germany must show restraint over Greece

Mussolini tried to warn his ally of the danger of bringing the country to its knees. So should we, says Patrick Cockburn
Britain's widening poverty gap should be causing outrage at the start of the election campaign

The short stroll that should be our walk of shame

Courting the global elite has failed to benefit Britain, as the vast disparity in wealth on display in the capital shows
Homeless Veterans appeal: The rise of the working poor: when having a job cannot prevent poverty

Homeless Veterans appeal

The rise of the working poor: when having a job cannot prevent poverty
Prince Charles the saviour of the nation? A new book highlights concerns about how political he will be when he eventually becomes king

Prince Charles the saviour of the nation?

A new book highlights concerns about how political he will be when he eventually becomes king
How books can defeat Isis: Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad

How books can defeat Isis

Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad
Judith Hackitt: The myths of elf 'n' safety

Judith Hackitt: The myths of elf 'n' safety

She may be in charge of minimising our risks of injury, but the chair of the Health and Safety Executive still wants children to be able to hurt themselves
The open loathing between Barack Obama and Benjamin Netanyahu just got worse

The open loathing between Obama and Netanyahu just got worse

The Israeli PM's relationship with the Obama has always been chilly, but going over the President's head on Iran will do him no favours, says Rupert Cornwell
French chefs get 'le huff' as nation slips down global cuisine rankings

French chefs get 'le huff' as nation slips down global cuisine rankings

Fury at British best restaurants survey sees French magazine produce a rival list
Star choreographer Matthew Bourne gives young carers a chance to perform at Sadler's Wells

Young carers to make dance debut

What happened when superstar choreographer Matthew Bourne encouraged 27 teenage carers to think about themselves for once?
Design Council's 70th anniversary: Four of the most intriguing prototypes from Ones to Watch

Design Council's 70th anniversary

Four of the most intriguing prototypes from Ones to Watch
Dame Harriet Walter: The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment

Dame Harriet Walter interview

The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment
Art should not be a slave to the ideas driving it

Art should not be a slave to the ideas driving it

Critics of Tom Stoppard's new play seem to agree that cerebral can never trump character, says DJ Taylor
Bill Granger recipes: Our chef's winter salads will make you feel energised through February

Bill Granger's winter salads

Salads aren't just a bit on the side, says our chef - their crunch, colour and natural goodness are perfect for a midwinter pick-me-up
England vs Wales: Cool head George Ford ready to put out dragon fire

George Ford: Cool head ready to put out dragon fire

No 10’s calmness under pressure will be key for England in Cardiff
Michael Calvin: Time for Old Firm to put aside bigotry and forge new links

Michael Calvin's Last Word

Time for Old Firm to put aside bigotry and forge new links