Private equity firm Bridgepoint is under fire for failing to disclose the lion’s share of its executives’ pay
Bridgepoint is under fire for failing to disclose the lion’s share of its executives’ pay.
The private equity firm, which listed on the London Stock Exchange in July, will have to disclose the salary and bonuses handed over to its boss William Jackson and other top executives.
But it won’t publish their so-called “carry interest” – a notoriously secretive portion of profits paid to private equity firm staff, which can often run into the millions of pounds.
Lack of transparency: private equity firm Bridgepoint listed on the London Stock Exchange in July
When Bridgepoint completed its initial public offering (IPO), it insisted the rare move would bring transparency to the murky world of private equity. Sources close to the company at the time said it ushered in “a new era of openness.”
But it refuses to disclose how much deferred interest each of its executives will receive, saying it is under no obligation to do so.
This means that shareholders who have bought Bridgepoint will have little idea how fully management is being rewarded.
Lord Mann, former chairman of the Treasury Committee, said: ‘It is imperative that there is full disclosure – Parliament will be paralyzed in its duties if it cannot see the full fee.’
In 2020, Bridgepoint paid £12.9 million in total carry interest, paying the most to the best performing staff.
A Bridgepoint spokesperson said: ‘We have followed all relevant regulations for the disclosure of UK quotes in our prospectus, as confirmed by regulatory, legal and accounting advisers.
“Suggesting otherwise is both misleading and inaccurate.”