U.K.-based interdealer broker TP Icap PLC is evaluating an alternative bonus plan for new CEO Nicolas Breteau and other senior managers following the dismissal of former CEO John Phizackerley, the Financial Times reported, citing two people briefed on the plans.
Relations between outgoing Chairman Rupert Robson and Phizackerley had deteriorated over the viability of the existing incentive scheme, which was designed to provide the company — formerly Tullett Prebon PLC — with the maximum value from its acquisition of rival broker Icap in 2016, according to the Oct. 14 report.
Phizackerley reportedly argued that the plan would pay out relatively little because the targets that served as the basis of the payouts were not feasible.
The scheme, which initially covered 20 senior staff and was approved by nearly 90% of TP Icap's shareholders, is based on executives boosting the company's share price, dividends and EPS between 2017 and 2019, the newspaper said.
The package will pay executives a higher bonus but a lower base salary, with a total of £60 million set aside for the plan. A quarter of the total will go to the CEO, meaning Breteau and new Finance Director Robin Stewart are in line for the award, although TP Icap has yet to confirm that both will be on the same package, the FT said. TP Icap has also yet to announce a final settlement with Phizackerley.
TP Icap said it would consult shareholders on any proposed changes.