‘One off payment’ to crane SIG out of financial minefield

‘One off payment’ to crane SIG out of financial minefield

At SIG Group’s general meeting on 9 July, 44.07% of shareholders voted against a resolution to approve a one-off payment of £375,000 to chief executive officer (CEO), Steve Francis. The move was put forward as part of a strategy plan to dig the former FTSE 250 construction company out of its struggles, which include a £112.7m pre-tax loss for the year reported in May 2020, the company’s decision to bulldoze its dividend, and the forecast of a 500-million-pound hit to 2020 revenue having experienced a drop in demand due to coronavirus.

In addition to gaining shareholder approval of Francis’ strategy plan, shareholders were asked to sanction a £165m capital raising backed by American private equity investor Clayton, Dubilier & Rice. In its prospectus, the company explained that the £375,000 payment was conditional on completion of the fundraising, in which Francis had agreed to invest £150,000 of his own money in New Ordinary Shares.’ in return.

Francis was appointed on a permanent basis on 24 April 2020 after two CEOs had resigned, bringing with him experience as CEO of Patisserie Holdings plc, Tulip Ltd and Danwood Group Holdings Ltd. His predecessor, N

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