$100K bonus for Bridges’ planners follows listing
Bridges Financial Planning advisers could be more than $100,000 better off on average, after their owner — Tower spin-off Australian Wealth Management (AWM) — debuted on the Australian Stock Exchange (ASX) last week.
AWM has revealed that more than 80 non-salaried Bridges advisers were given eight million shares as part of the public listing of the group.
AWM, which comprises both Bridges and Tower Trust, listed at an issue price of $1 and received strong support on its first day before returning some of its initial gains later in the week to settle at around $1.15.
Chief executive Andrew Barnes said the proportion of shares received by each non-salaried planner was dependent on a combination of factors.
But if the shares were distributed evenly, each adviser would receive 100,000 shares, worth more than $100,000.
“We had a formula to calculate the whole process but primarily the amount of stock offered depended on funds under management, the length of service [of the adviser] and new business flows,” Barnes said.
The shares are to be vested in four batches, with two million issued last week and another three batches for the same amount to follow in 12, 24 and 30 months time.
“This is a real equity stake in a listed business of which financial planning forms a significant part and is something the guys have been after for a number of years,” Barnes said.
Barnes said he understood some non-salaried advisers had distributed shares to some of the group’s 50-60 salaried advisers.
“The business fundamentals see the group separate from an institution to a structure where advisers essentially have control, which is good for how the Bridges’ advisers are wanting to position themselves in the market,” Barnes said.
Head of Bridges Alex Hutchinson said advisers could also expect more good news in terms of ongoing equity arrangements, but would not reveal specific details.
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