Smith & Williamson overhauls remuneration ahead of IPO

Smith & Williamson is restructuring its wealth manager pay policy as the investment group prepares for a listing on the London Stock Exchange by the end of 2019.

The new remuneration measure, which has already been approved by the group’s committee, will take into account financial performance in addition to non-financial criteria, like compliance and risk issues, as well as client management, when determining wealth manager pay.

“We regularly review our comprehensive remuneration package, including appropriate equity incentives, to ensure it remains competitive within the market,” the company said in its full-year results.

“We continue to develop our reward structure to support our strategic objectives and to incentivise appropriate conduct and behaviours alongside financial performance,” it added. The company currently employs 1,722 people.

The tax and wealth planner also revelead that the planned stock market listing will not happen until late 2019.

David Cobb, the company’s co-chief executive, said: “To execute our longer term growth strategy, we have already announced our intention to prepare for a potential stock market listing. This will not take place until we have completed our major investment in new technology platforms, and these are unlikely to be complete before the second half of 2019.”

Full-year numbers for 2018 show adjusted operating profit up 13.8% to £46.2 million. Operating income jumped 9% to £266.7 million. Funds under management and advice increased by 6.9% to £20.1 billion.

The firm raised its dividend by 12.5% to 36p per share.

Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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