Amigo Holdings PLC (LON:AMGO), the leading provider of guarantor loans in the UK, today confirmed Hamish Paton has been appointed as CEO and executive director of the Company with immediate effect, following FCA authorisation. As previously announced on 14 June 2019, Mr Paton assumed the role of CEO designate at Amigo.
Following the above change the total number of Directors will consist of four independent Non-Executive Directors, including the Chairman and two as Executive Directors.
Stephan Wilcke, Chairman, commented: “It is a pleasure to officially welcome Hamish to the role of CEO at Amigo. He has very relevant experience from leading a people based consumer credit business. Hamish’s extensive customer facing background and proven hands-on operational expertise position him well to deliver the leadership required for the next phase of Amigo’s strategy.”
Hamish Paton, CEO of Amigo, commented: “Amigo plays an important role in the lives of its customers and it does that really well. The guarantor loan model is an innovative way to help people find the money they need to make considered life purchases. I would not be here if I did not firmly believe that Amigo provides a much needed product and occupies a space in society that is making a real difference to the lives of our customers, many who cannot access credit from their bank or building society.
“I am incredibly fortunate to be walking into a business where there is a true sense of ownership amongst the teams and individuals working at Amigo. This my opportunity to take Amigo forward and make sure it is the best company it can be for all our stakeholders.”
The elements of Hamish Paton’s remuneration package detailed below are consistent with the shareholder approved Directors’ Remuneration Policy and reflect the process by which Hamish Paton was recruited:
Base salary: £400,000 p.a.
Maximum annual bonus: 150% of salary of which 100% will be deferred into company shares for three years or until the shareholding guideline of 200% has been met. Once the shareholding guideline has been met, only 50% of the annual bonus will be deferred into shares for three years with the remaining 50% paid in cash following the year end. There is a one year post cessation shareholding requirement.
Pension: Pension or pension allowance up to 5% of base salary.
Standard benefits consistent with offering to all employees: including four times base salary death in service cover, access to private medical insurance, critical illness cover of £100,000 and income protection up to 65% of base salary for up to five years.
The Company has agreed to pay relocation costs of up to £325,000 in re-imbursement of the costs of relocating Hamish’s family to the vicinity of the Company’s head office in Bournemouth.
Long Term Incentive Plan (“2019 LTIP”) award: Hamish will be eligible for an annual award over ordinary shares of 0.25p each (the “Shares”) equivalent to 200% of his base salary. The awards will be made following the release of the financial results for the quarter ended 30 June 2019. Performance measurement will be based on EPS growth, Relative total shareholder return (“TSR”) and Absolute TSR growth metrics.
Notice period: 12 months required from either side.
In addition to receiving the 2019 LTIP grant, Hamish will be awarded a ‘one-off’ buy-out LTIP award over 620,655 Shares on a nil-cost basis, being 250% of base salary, on accepting the role of CEO, to compensate him for relinquishing his right to an incentive arrangement put in place when he joined the Company in May 2019 as Chief Commercial Officer, which was in place to compensate Hamish for relinquishing rights to long term incentive arrangements at his previous employer. The number of Shares vesting after three years will be determined using the same performance conditions and oversight as those agreed for use within the 2019 LTIP. The vested shares will be subject to an additional minimum holding period thereafter, of a further two years.
The person responsible for this announcement is Roger Bennett, Company Secretary.