LV chief admits £530m deal could land him big payday as members await the chance to vote on controversial takeover
- Mark Hartigan, 58, is expected to remain in the top role if sold to Bain Capital
- The takeover has come under attack from political figures like Lord Heseltine
- The tie-up would give its 1.2 million members about £100 each
The boss of LV has admitted he could be in line for a bumper payday if he stays on after Bain Capital’s £530 million takeover.
Mark Hartigan, 58, is expected to remain in the top role if the mutual insurer is sold to the US private equity giant, and could earn millions through lucrative long-term bonus plans that private equity groups typically hand their staff.
Bain’s takeover has come under fierce attack from political figures such as Lord Heseltine and Ed Miliband, as well as the City and industry figures.
Mark Hartigan, 58, is expected to remain in the top role if the mutual insurer LV is sold to the US private equity giant, and could earn millions through lucrative long-term bonus plans that private equity groups typically hand their staff
Members must still vote on the controversial tie-up, which would give its 1.2 million members only about £100 each.
If Bain buys the business after winning approval from financial regulators and LV’s members, it will demutualise the insurer, ditching its proud history of putting customers first.
Mr Hartigan said: ‘Most private equity owners give their management [teams] an incentive plan to align long-term success with the success of the management team.
‘I’m not going to deny that should I stay in Bain in the future, they might try to do that for LV. But any detail of that is certainly not a driver [for the deal].’ He added: ‘I’m here to serve. That’s what I’m doing.’
Matt Popoli, the Bain executive running the LV bid, said there was no ‘big pot of gold’ waiting for Mr Hartigan.
He added: ‘In terms of Mark’s potential future package, nothing is finalised. If Mark does sign a new contract, we expect it will be very similar to his previous contract.’ Mr Hartigan was paid £1.2 million last year.
The Daily Mail is campaigning to save LV from a private equity takeover, after the firms snapped up 123 businesses worth £36 billion during the pandemic.
It emerged this weekend that rival mutual insurer Royal London has put forward a controversial proposal to Bain to split LV between the two companies.
Royal London chief executive Barry O’Dwyer has approached Mr Hartigan with what he describes as an ‘enhanced’ deal that would ‘be more attractive’ to the mutual’s membership.
The Daily Mail is campaigning…
Read More: LV chief admits £530m deal could land him big payday as members await