Hargreaves Lansdown chief sells £8.43m stake

Ian Gorham has mustered £8.43m from the sale of shares that have more than doubled in price since he was granted them.

When 800,000 shares were granted to Mr Gorham back in October 2010 each share was valued at 458.23p. Today the market value of the each share is £11.79.

Following the exercise of the share options, Mr Gorham sold a total of 715,000 ordinary shares of 0.4 pence in the company (ordinary shares) at a price of £11.79 per share.

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Part of this sale was made to meet taxation arising on exercise of the share options and partly to meet the purchase costs of increasing his shareholding in the company.

The number of ordinary shares sold represented 0.151 per cent of the ordinary shares in issue.

Mr Gorham still has 85,000 ordinary shares, increasing his (including his connected persons) shareholding in Hargreaves Lansdown from 357,628 shares to a total 442,628 shares (0.093 per cent of the ordinary shares in issue).

Following this exercise, Mr Gorham retains 64,109 unexercised share options in a number of schemes.

In a statement to the stock exchange, Hargreaves Lansdown stated no new shares have been issued as a result of the exercise of the share options.

Earlier this month, Hargreaves Lansdown topped the Financial Adviser top 100 chart by a substantial margin.

Hargreaves Lansdown has seen a mass influx of new business this year as a result of the Retail Distribution Review and an increasing number of referrals.

Adrian Lowcock, senior investment manager for the firm, said: “Our 2013 results, which were published at the end of June, show an increase in operating profits of 28 per cent.

“The key point to take from that is that net new business was £5.1bn, up 59 per cent, and we got 76,000 new clients, up 69 per cent from last year.”