Terry Smith’s dividend boost nets him £7.5m

CITY veteran and Tullett Prebon chief executive Terry Smith picked up £7.5m including pay and dividends last year.

Smith’s bonus was cut by a sixth to £3.38m, half of which came in shares which he cannot cash in until 2014, but he received free shares and dividends worth nearly £3.5m.

Tullett, a major interdealer broker, felt the impact of severe market turmoil last year and posted a 15 per cent drop in pre-tax profit to £119.2m.

Smith’s basic salary for the year was frozen at £650,000, as it has been since 2005.

The former East London schoolboy owns around five per cent of Tullett and received share options, which are currently worth £1.85m under the long-term incentive plan, as well as a dividend of £1.6m, according to the annual report, which was published yesterday.

Finance director Paul Mainwaring saw his pay and bonus package fall 6.5 per cent to £1.12m and he received share options of £461,500.

Chairman Keith Hamill said the firm had made a “reasonable” start to this year with like-for-like revenue down one per cent for January and February.

“Market and competitive conditions are expected to continue to be challenging,” Hamill said in the report.

“The world’s financial markets remain unsettled, however, and it seems reasonable to expect that there will be some periods of market volatility and heightened activity during 2012, as well as periods of more subdued activity,” he warned.