Shareholders in the beleaguered Sanctuary Music Group may not be keen to award chief exec Frank Presland a £500,000 bonus, according to a report in the U.K.’s Sunday Times.
The paper said the extra money would fall due if another bidder offers more than the 20p per share that has already been tabled by Universal.
The payment equates to £100,000 for every one-penny increase in the bid.
A circular is reportedly being sent to Sanctuary investors asking them to support the one-off bonus to Presland, who is also Elton John’s manager, although the company share price has more than halved following a rescue fundraising.
The proposed payout is said to have infuriated a number of shareholders who are sitting on huge paper losses.
According to Sunday Times, they are critical of Presland, claiming he spends limited time at the company and has conflicts with his other music jobs.
His salary at Sanctuary is £340,000 but his total earnings are thought to top £1 million.