LV faces backlash over potential payout to outgoing chief
Insurance giant LV is facing backlash from members as it refuses to rule out a further bonus for controversial outgoing chief Mark Hartigan.
Hartigan was revealed to be stepping down last week after a failed attempt to sell the insurer to private equity giant Bain Capital. The move sparked uproar and was rebuffed by shareholders in a vote.
He scooped a £511,000 bonus on top of his £435,000 salary in 2021, however, and LV has declined to rule out handing him another bonus for the current financial year, the Mail on Sunday first reported.
Shareholders are now poised for a rebellion at the firm’s annual general meeting as the firm looks for approval on last year’s pay reports.
One LV member, Donald Hare, told the Mail Hartigan was taking members of the mutual “for a ride”.
“He’s got a cheek. I would vote against him getting that amount. I think he’s ripped all the members off,” he said.
Hartigan’s payout last year came after the insurer spent more than £30m of members’ cash on the proposed sale to Bain, which would have lost the firm its mutual status.
The deal would have reportedly netted Hartigan a hefty profit and a potential stake in the firm.
LV was contacted for comment.