Former Alliance Trust boss picks up £1.2m for two months worked in 2016

The former chief executive of Dundee-based Alliance Trust received a salary and benefits package worth more than £1.2 million during 2016, despite only being in post for two months of the year.

Katherine Garrett-Cox, who was ousted from her role in February 2016 after a long running campaign from activist investor Elliott Capital Advisors, received a salary for the year of £425,000 in addition to pension contributions of £106,000, according to the firm’s latest annual report.

Anthony Brooke, chairman of the firm’s remuneration committee, said that all of Ms Garrett-Cox’s pay and bonus arrangements for last year were within the terms of the remuneration policy approved by shareholders in 2014.

The annual report also stated: “The company no longer has a chief executive officer and all payments made in 2016 reflected those required to be made under her contract.”

The report also states that Ms Garrett-Cox, 49, owned more than 450,000 shares in Alliance Trust, worth about £3 million at the current share price.

Her total package also included a £410,000 bonus for the 2015 year and £379,079 from a long-term incentive plan. In April this year, she will receive a further £587,352 for long-term incentives related to past performance.

Following Ms Garrett-Cox’s departure a wide ranging strategic review of operations was carried out prompting wholesale changes in the way the trust is run as it attempts to end years of underperformance.

Steps taken as a result of the overhaul include management of the portfolio is being outsourced to Willis Towers Watson, with eight different fund managers around the world helping to pick stocks.

The investment arm has been sold to Liontrust Asset Management in a deal that is due to complete next month.