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BIG Technologies – BIG clues
A few weeks back I wrote about the idea of the Palantir Paradox – the fact that whenever share-based remuneration seems to be the big issue, it isn’t.
In this vein, BIG Technologies’ shareholders have had an eventful few weeks. This week the company dismissed its CEO and leading shareholder, Sara Murray. This followed the confirmation that her effective shareholding and influence following the flotation in the summer of 2021 were substantially greater than she had led the market and the board to believe. She has been dismissed, and the company is commencing litigation against her.
BIG Technologies’ levels of share-based remuneration were a standout when we first looked at share-based remuneration back in summer 2023. Most of it was to go to the senior management team.
The table below shows how in FY23 and H1 FY24 for every five pounds of revenue about one pound was allocated to share-based remuneration schemes and their beneficiaries. A pretty clear indication, we think, that governance was not what it should have been.
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