Hargreaves Lansdown (HL) chief executive Chris Hill has received a £2.5m remuneration package in the financial year ending 30 June 2018 as the firm eyes a bigger share of the UK’s £1.6trn private wealth market.
In the firm’s annual report, published on Thursday, it outlined that during his first full year as chief executive, Hill (pictured) was given a base salary of £620,000, following an increase of 2% in executive salaries across the firm.
Hill’s overall pay package was boosted to £2.5m after factoring in a £1m cash bonus, £680,000 from a deferred shares bonus, £164,000 from historic options investing, £11,000 in pension payments and £23,000 in other cash benefits.
Meanwhile, chief financial officer Philip Johnson had a base salary of £425,000, in addition to £598,000 as a cash bonus, £399,000 from a deferred shares bonus and £20,000 in other cash benefits.
Target = adviser clients
The report also outlined that the D2C platform provider is targeting potential transfers from clients of other IFAs and wealth managers who are looking to consolidate their investments.
HL, which reported £91.6bn in assets under management in the financial year, said the total UK private wealth market is estimated at £1.6trn, of which it sees £1.1trn as addressable.
It said: “Outside the direct-to-consumer (D2C) space, the bulk of this addressable market is held through independent financial advisers, independent wealth managers and vertically integrated firms.
“A significant amount of this investment pool will have been initially advised upon, maybe many years ago, but now receives no ongoing advice and little support.”
Additionally, the report referenced Platforum’s estimate that £30bn is held directly with asset managers who are increasingly realising that they are not set up to service direct retail customers.
“This provides a source of transfers or an opportunity to acquire the entire direct back books from fund management groups,” it said.
Diversity
Elsewhere, HL’s report said the firm is committed to improving diversity, inclusion and giving an equal opportunity to everyone wanting to progress their career.
It said: “Our chair and chief executive are members of the 30% Club and we have signed up to the Women in Finance Charter, both focused on increasing the number of women in senior leadership positions.
“Furthermore, we are positioned in the top 25 in FTSE 100 ranking of Women on Boards and in Leadership.”
