THE head of 3i’s US and Asia Pacific operations is to leave the FTSE 100 venture capital group with a £430,000 payoff in order to study philosophy and history.
Martin Gagen, 48, an executive director of 3i since 1997, will be given a year’s salary after stepping down from the board with immediate effect. He will begin a masters degree at America’s Stanford University next month. He has a politics degree from Hull University.
Michael Queen, finance director of 3i, justified the generous payoff by saying that although Mr Gagen had been seeking a lifestyle change, the company had “accelerated the timetable he was on”. Mr Queen said: “He is being compensated for that.”
Mr Queen denied there was any ill-feeling between Mr Gagen and Philip Yea, 3i’s new chief executive. Mr Gagen initially had been mooted as a possible candidate for the post of chief executive after the retirement earlier this year of Brian Larcombe. Mr Gagen said yesterday that he had made clear that he was not interested in returning to London, “even for the chief executive’s job”.
Last year Mr Gagen was 3i’s third highest paid executive, behind Mr Larcombe and Mr Queen, with a package of £687,000, comprising a basic salary of £432,000, a bonus of £246,000 and benefits of £9,000. His position became “difficult” after 3i transformed itself from a business divided into geographic regions into one split into product divisions.
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The change meant that Mr Gagen, an executive director, found himself reporting to Rod Perry, another director responsible for 3i’s venture capital business worldwide. “We clearly needed to sort that situation out,” Mr Queen said.
Allan Ferguson will assume responsibility for 3i’s US operations, reporting to Mr Perry. Chris Rowlands, who is on 3i’s executive committee responsible for growth capital, will be responsible for Asia Pacific.
Mr Gagen said that he aimed to combine a career in academia and business.