EMBATTLED music group Sanctuary has walked into a row with shareholders after proposing a £500,000 bonus for its chief executive, even though its share price has more than halved following a rescue fundraising.
A circular is being sent to Sanctuary investors this weekend asking them to support the one-off bonus to Frank Presland, who is also Sir Elton John’s manager.
It is proposed Presland be paid additional money if another bidder offers more than the 20p a share that has already been tabled by Universal, the entertainment group. This payment equates to £100,000 for every 1p increase in the bid.
The proposed payout has infuriated a number of shareholders who are sitting on huge paper losses. They are critical of Presland and claim he spends limited time at the company and that there are conflicts with his other music jobs. His salary at Sanctuary is £340,000 but his total earnings are thought to top £1m.
When Presland was appointed, the share price was 50p.