Mark Hartigan, who faced harsh personal criticism for his role in the canceled sale to Bain Capital, received the annual bonus after the board decided he had met most of his personal goals for last year. The insurance company founded as Liverpool Victoria in 1843 said Tuesday that profits fell by 9 million £ to 31 million £ last year, despite increasing the value of its new business sales from 1.3 billion £ to 1.6 billion £. Hartigan had argued that LV = could not continue as an independent insurance company after a strategic review and pushed for a sale to Bain Capital for a possible deal with its Royal London colleague, angering critics who said it was bad for company members and business ownership diversity in the UK economy. Gareth Thomas, the Labor MP who chairs the All-Party Mutual Relations Group, said it was great that the company could give Hartigan a big bonus after an unpopular, costly sale. “This shocking bonus payment raises the question of who is really in charge of LV. What the hell was the board thinking? ” said Thomas. “Given that his plan to declassify and sell to the controversial US private equity giant Bain Capital was not supported by almost 90% of LV owners, it is surprising that the board may believe that such a poor performance payment is justified. . “Mr. Hartigan must leave and be replaced by someone who is truly committed to the proper functioning of a mutual business.” Only 69% of the 174,240 members who voted for the deal in December approved the 30 530m takeover bid, while 75% of the members who voted had to approve the deal. The participation represented 15% of the 1.16 million members of LV =. Company accounts show that LV = has spent at least εκατο 33 million £ over the last two years on the strategic review and plans to sell to Bain Capital before its members refuse to support the deal in December. The company said that Hartigan had no incentive to continue the sale, which means that the outcome of the process will not affect his bonus. He stated that the CEO had achieved sufficient financial goals to be awarded 69% of the possible maximum bonus for the year, while 60% of the award will be postponed for the next three years. The total salary and his bonus for the year were worth a total of 1 1.1 million. Subscribe to the Business Email daily email or follow the Guardian Business on Twitter at @BusinessDesk Last month, the company launched a liquidation in the boardroom following the failed Bain Capital process, announcing that President Alan Cook would step down in early April, with three other executives also leaving. However, he said that Hartigan will remain in the company and that he did an excellent job. A LV spokesman said Hartigan’s bonus was subject to “extended individual and business performance results” and was set by the company’s board of directors. “Mark has led the company’s successful recovery over the past 18 months by boosting its business performance and improving its business viability. We have exceeded both the new business volumes and our profit targets with a significant increase in sales and profits from transactions “.
