Pizza man’s moneymaking Saga sees him set for a £2m flotation windfall

 

The stock market listing of over-50s insurer and cruise operator Saga has secured its new boss a £2m golden handshake on top of a pay package that could total £2.9m.

Lance Batchelor, who joined as chief executive from Domino’s Pizza in March, has been handed £1m in cash to mark Saga’s admission to the stock market last Thursday and will be given a further £1m on the year anniversary of the listing.

Saga confirmed yesterday that Mr Batchelor has also been given the right to buy around 2.1 million shares in the company, vesting between 2017 and 2019, at its 185p float price.

Buying shares would cost Mr Batchelor around £4m, but would be worth much more if Saga’s price rises over the next five years. His one-off £2m payment and share options were contingent on a stock market listing of the business.

The 50-year old was head- hunted to lead Saga at the end of last year as part of plans by the company’s private equity owners Charterhouse Capital Management, CVC and Permira to beef up management ahead of a stock market listing. Mr Batchelor was praised during his time in charge of FTSE 250-listed Domino’s for overseeing a period of strong growth. Shares in the pizza delivery company fell 10 per cent on news of his departure.

Mr Batchelor enjoyed a similarly generous signing-on package when he moved to Domino’s from Tesco Mobile in 2011. The executive was handed 2 million Domino’s shares in two instalments as part of the move.

His cash reward and share options come in addition to a £650,000 base salary and participation in Saga’s bonus scheme, which entitles him to up £975,000 a year. He could also be handed £1.3m worth of shares annually as part of the company’s long term incentive plan and has the option to take home an additional £12,000 instead of a company car.

A submariner in the Royal Navy before going into business, Mr Batchelor earned £532,000 heading Domino’s in 2013, down from a total of £852,000 the year before.

Saga last month raised £550m from an initial public offering that valued it at £2.5bn. Shares in the company also failed to ‘pop’ on their first day of unconditional trading on Friday, closing just marginally higher than their offer price at 185.25p. Yesterday Saga closed up 0.75p at 185.75p.

The weak performance came despite the fact Saga priced its shares at the bottom end of its expected 185p to 245p range, amid waning appetite for new share offers among investors.

A spokesperson for Saga said of Mr Batchelor’s share options: “The options for Lance at the issue price are so that he has an interest over the long-term for increasing the share price. That means his interests are completely aligned to our 200,000 retail investors who are also customers. We think that’s the right thing to do.”

Several recently floated companies have struggled to maintain shares at their issue price, while retailer Fat Face recently cancelled plans for an IPO.

Start your day with The Independent, sign up for daily news emails
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

SThree: Trainee Recruitment Consultant

competitive: SThree: Are you passionate about sales?Do you have a keen interes...

Recruitment Genius: Loan Adviser - OTE £30,000

£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate