The Hut Group (THG) CEO Matthew Moulding is set to receive an £830m shares payout after the company’s share price increased significantly triggering a bonus clause.
According to The Guardian, Moulding will receive the payout after the “market value of the company’s shares breached certain levels” that were set during its flotation back in September.
According to the newspaper, if the market share value remains above the “milestone” level for over 15 days, the payouts to Moulding and his respective executives will be triggered.
Moulding, who founded the company in 2004, could reportedly see his “total share award” rise further if the company’s market value reaches £7.25bn.
As well as the share awards, Moulding will receive a “base salary” of £750,000 a year, increasing from £318,000 in 2019.
A spokesman for THG told The Guardian: “We are delighted with the market reaction to our IPO and that all of our shareholders are benefiting from the strong performance of the business.
“The equity scheme was put in place when THG was a private company, and we are delighted that over 200 THG staff have already shared in the scheme, worth around £200m today.”
The group, which comprises online brands such as Illamasqua, lookfantastic and MyBag, launched an IPO back in September with the hopes of raising around £920m from the sale.
Prior to the flotation Moulding said: “Our intention to float THG on the London Stock Exchange reflects the achievements of the past but also our strong belief in the significant potential for THG in the future.
“THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers.”
He added: “The brands we own today give us leading strategic positions in prestige beauty and nutrition, powered by Ingenuity, our differentiated proprietary direct-to-consumer e-commerce solution.”