IG Group directors demand higher pay after profits rise
SPREADBETTING firm IG Group said yesterday that it will ask shareholders to approve increases in its directors’ pay packages, as it reported a 30 per cent hike in its full-year profits, driven by new account openings.
The company said that its directors’ basic pay has “fallen into the bottom quartile in most relevant surveys”, due to its policy of not reviewing remuneration every year.
It added a number of key shareholders had agreed some increases – to be set out in the annual report – and that it intends to review basic pay annually from now on. All shareholders will be invited to vote on the proposals at the company’s annual meeting in October.
The news came as IG reported a pre-tax profit of £125.9m for the full year to 31 May, and chief executive Tim Howkins said that the new financial year had started well, despite reduced market volatility.
IG opened more than 74,000 accounts during the year, up from 43,000 a year earlier, helping it post revenues of £257.1m, up four per cent.
The company also confirmed a final dividend of 15p, up by 25 per cent on 2008, and its gained 2.5 per cent, to close at 276.25p.