Financial PR firm Financial Dynamics has revealed details of its new
deal with parent company BDDP, the French advertising agency.
The deal follows the ending of earn-out agreements between BDDP and the
original shareholders of FD last year - said to have grossed the eight
of them more than pounds 3 million
It includes a guarantee that should BDDP want to sell its 51 per cent
stake in the firm, the same offer in cash must be made for FD’s 49 per
cent - held in an offshore Employee Share Ownership Plan.
The firm has operational independence, now including the power to buy
into or set up (non-competitive) companies, either as individuals or as
FD, without referral to BDDP.
FD’s new management structure includes a ten-strong board for the
financial division chaired by Tony Knox - back at work after a heart
operation - and a five-strong corporate board chaired by David Lloyd.
The original shareholding structure has been replaced by a partnership
remuneration scheme with two elements: the majority of the firm’s pre-
tax profits (70 per cent) will be paid out on the basis of each of the
18 partner’s fixed entitlement to share capital; the other 30 per cent
will be divided according to the performance of individual account
teams. This will be weighted in favour of retained business in what
chief executive Nick Miles said was an attempt to ‘iron out’ the effect
of massive ad hoc projects.
In addition, the partners’ stakes will increase in line with their
contribution to the firm’s profits subject to a maximum of 25 per cent
Partners may cash in their share entitlement subject to a 25 per cent
yearly discount for the first four years. To fund this, the ESOP may
borrow money and has access to a cash fund into which 20 per cent of
each partner’s bonus will be paid.