Quindell share price support

QUINDELL has spent £11m in a bid to bolster its own share price, writes Peter Campbell.

The insurance claims processor bought scores of staff out of a l ucrative share rewards scheme that would have sent its stock tumbling if it went ahead.

It would have allowed current and former employees to claim ownership of 22m shares at a hefty discount. Many would have sold these – banking an instant profit.

But 22m shares being sold would have knocked the company’s share price.

After a tumultuous two years that has seen shares fall from 615p to just over 30p before recovering, its new managers are keen to prevent wild fluctuations in the value of its stock.

Late last week, Quindell announced it has opted to buy the staff out of the scheme, giving them the money they would have made selling their shares. Company share schemes are a common way of incentivising staff.

Normally, employees are granted options that they can cash in in several years’ time.

The options, which let them buy shares at a discount, are only worth money i f the shares rise above the option price – meaning they will benefit if the firm performs well.

Quindell, which last week closed at 104.5p, refused to say how many staff were in the scheme.

However it is believed many are former employees who worked in its legal arm, which was sold to Australian law firm Slater & Gordon earlier this year.

It is also believed the payout will not line the pockets of Rob Terry, the company’s founder and ex-chairman who was fired for share selling and is now facing a Serious Fraud Office investigation into the company’s accounting shenanigans during his tenure.