Quindell have appointed Richard Rose as chairman and Jim Sutcliffe as deputy chairman.
To secure the pair the business have agreed a share option package of 19.6m shares. This is a very generous package.
Reasons why such a large benefits package offered
1) Quindell leaders attract negative press regardless of their standing in the business world. The personal abuse they will receive comes at a cost.
2) Leadership team required that is respected by the city. To prise top talent from safe established businesses it is necessary to pay a premium.
3) Rose and Sutcliffe have to be compensated for the reputation damage they could suffer due to the mud-slinging Quindell attracts.
4) Necessary to pay a premium to secure targeted individuals.
Is the size of the benefits package good or bad news for shareholders?
a) Size of benefits package is excessive. Has a significant cost to the business and therefore has an impact on shareholder value.
b) Many of the share options can be exercised before the share price has reached 340p (between 68p and 240p).
Benefits package is linked to share price, with a £3.40 target.
In conclusion the benefits package is very generous. However if you had a choice of a heavyweight team of leaders respected by the city or the previous leadership, you would choose this one.