Hargreaves Lansdown share price: CEO waives bonus amid Woodford troubles

on Jun 17, 2019
Updated: Mar 11, 2020

Hargreaves Lansdown’s (LON:HL)

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chief executive is forgoing a bonus of £2.1 million until fund manager Neil Woodford’s troubles are resolved, the Financial Times has reported. The FTSE 100 company was a big supporter of Woodford until the investor froze withdrawals from the fund at the end of last month following a disappointing performance by several of his investments.

Hargreaves Lansdown’s share price, which has been under pressure since the Woodford fund suspension, closed marginally lower on Friday, giving up 0.21 percent to end trading at 1,870.00p. The group’s shares have given up more than seven percent of their value over the past year.

HL chief executive waives bonus

The FT quoted a person familiar with the matter yesterday that Hargreaves Lansdown’s CEO Chris Hill was forgoing his bonus of as much as £2.1 million until fund manager Neil Woodford’s troubles are resolved. The newspaper notes that he has already apologised to clients of the UK’s largest investment fund supermarket whose funds have been trapped following the freezing of the Woodford Equity Income fund, and has further launched an internal investigation to make sure his company recommends products in an unbiased manner.

Since the shock decision to freeze investor withdrawals the fund earlier this month, Hargreaves has removed it from its ‘Wealth 50’ list of favourite funds. The company, however, has been criticised for its decision to readmit Woodford’s fund into the Wealth 50 at the start of the year, despite the fund’s lacklustre performance.

Analysts on blue-chip company

The 11 analysts offering 12-month targets for the Hargreaves Lansdown share price for the FT have a median target of 1,775.00p, with a high estimate of 2,490.00p and a low estimate of 1,332.00p. As of June 14, the consensus forecast amongst 14 polled investment analysts covering the blue-chip group has it that the company will underperform the market.

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