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Tavistock offers share deal carrot to top executives

Tavistock offers share deal carrot to top executives

Tavistock has set its executives a series of "challenging and significant" performance targets in exchange for the promise of 48.5m shares in the company.

The company has announced to the London Stock Exchange this morning that it has issued the shares - equivalent to 9.09 per cent of the shares currently in issue - to be divided among Tavistock's executive directors and management if certain performance targets are met.

Brian Raven, the company's chief executive, and Oliver Cooke, its chairman, have been promised a total of 11.6m shares each if they continue to be employed at the company, achieve £5m of pre-tax profit in a single year and reach £1.5bn of funds under management.

This must be achieved in the next ten years.

The shares have been valued at 5.25p each, a premium on Tavistock's current share price which this morning is 2.83p.

This means that should Mr Raven and Mr Cooke achieve their targets they will be remunerated with £5.8m each.

This morning's announcement stated: "The options are capable of being exercised at any time within a 10-year period from the date of grant, subject to the achievement of the performance targets.

"Options not exercised by the end of the period will automatically lapse and will no longer be capable of exercise thereafter."

In December Tavistock announced that it had made a loss of £688,000 for the six months ending in September 2016, which was a reduction of 16 per cent on the same period for the year before.

Meanwhile the company's funds under management increase from £540m to £690m over the course of the year.

In January Mr Raven told FTAdviser that he planned to focus on hiring more advisers and marketing its discretionary services, rather than continuing its shopping spree for firms.

damian.fantato@ft.com