Saga share price: Chief executive in line for £2m float windfall

on Jun 3, 2014
Updated: Apr 9, 2020
Listen, Tuesday, June 3: The stock market floatation of Saga has secured the company’s new boss a £2 million windfall, The Independent has reported.

Shares in Saga, which listed on the London Stock Exchange last month, have lost 0.3 percent so far this morning and are currently changing hands close to the company’s float price of 185p.
**Lance Batchelor in line for £2m windfall**
The Independent today quoted Saga as confirming that Lance Batchelor, who joined as chief executive from Domino’s Pizza in March, had been handed £1 million in cash to mark the insurer’s admission to the stock market last week and would be given a further £1 million on the first anniversary of the listing.

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Saga also revealed that Batchelor had been given the right to buy around 2.1 million shares in the company, vesting between 2017 and 2019, at the float price of 185p.
Saga commenced unconditional trading on the LSE last Thursday. The company’s shares however closed in the red on that day, just a quarter of a penny above the float price. Saga’s share price also failed to take off during the company’s market debut when the shares flatlined at 185p. (Saga share price closes flat)

A company spokesperson told The Independent that Batchelor’s “options at the issue price are so that he has an interest over the long-term for increasing the share price”.
“That means his interests are completely aligned to our 200,000 retail investors who are also customers,” the spokesperson added. Saga has said that 50 percent of its shares were allocated to retail investors, with “a substantial majority” going to the company’s customers who were able to apply with a minimum amount of £1,000 and were also entitled to free loyalty shares.

**Fred. Olsen partnership**
In a separate development, Saga said yesterday in a statement that it would be able to offer its customers cruises provided by other operators, including Fred. Olsen Cruise Lines, Azamara Club Cruises and Celebrity Cruises, with more partnerships to be announced.

“This is an exciting time for Saga Travel and this venture allows us to reach out to more people,” Robin Shaw, chief executive, Saga Cruises, said in the statement.
London-based Fred. Olsen explained in a separate statement that Saga would have allocations on a range of 2014/15 Fred. Olsen cruises across its fleet of four ships, focusing on products which did not compete directly with Saga cruises.
“This new agreement between Fred. Olsen Cruise Lines and Saga Holidays will help to improve our yields significantly,” Nathan Philpot, Sales and Marketing Director for Fred. Olsen, noted in the statement, adding that both companies were “keen for the venture to be successful”.
**As of 09:36 BST, buy Saga shares at 185.25p.**
**As of 09:36 BST, sell Saga shares at 185.00p.**


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