(Alliance News) - AJ Bell PLC on Monday said it entered into a consultancy agreement with Blythe Business Services Ltd, which is associated with AJ Bell's founder & former chief executive officer Andy Bell.
Andy Bell retains a 23% stake in AJ Bell.
AJ Bell, a Manchester-based stockbroker, appointed former deputy CEO Michael Summersgill as its new CEO on Saturday, replacing Andy Bell. It was agreed that Bell would continue to work with the company in a consultancy role.
Last week Tuesday, the UK's Financial Conduct Authority approved the move after concerns "about the need for a clear distinction between the executive and non-executive roles in a regulated firm and the risk to effective board governance that would arise if a founder CEO with a significant shareholding remained on the board after stepping down as CEO."
Under the new consultancy agreement, AJ Bell will pay GBP150,000 per year to Blythe Business Services. The deal is for at least one year and can from October 2023 be terminated at any time with a one month notice period by either party.
AJ Bell shares were 1.3% higher at 272.80 pence each in London on Monday morning.
By Tom Budszus; tombudszus@alliancenews.com
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AJ Bell (AJB)
