Provident Financial chief Malcolm Le May distracted by other directorship while fighting a hostile takeover bid
Provident boss Malcolm Le May – has been commissioned to recruit a chairman from trading company IG Group
The boss of Provident Financial has ended up with a major distraction due to one of his other lucrative functions, just as he is fighting a hostile takeover bid.
Malcolm Le May – who is leading the lender's attempts to ward off rival Non-Standard Finance (NSF) – is responsible for recruiting a chairman at the IG Group trading company, where he is a senior independent non-executive director.
It is likely to raise questions about whether the 61-year-old is overloaded.
As a senior director at IG, Le May receives £ 90,000 a year on top of the £ 1.4 million he earned from Provvy in 2018.
The former investment banker is also a partner at two non-listed companies – Juno Capital and Opus Corporate Finance.
IG President Andy Green will resign in September after being in charge for five years.
The company said that Le May will lead his appointment committee in the search for a replacement, a job that is likely to be accompanied by hiring a headhunter.
NSF tries to get a grip on the Provvy in a hostile bid and already has the support of the three largest investors of the target.
The boss of NSF, John van Kuffeler, was formerly chief executive of Provvy and has claimed that current managers do not understand the company.
Last week, NSF was forced to admit that it had made accounting errors with regard to dividend payments, thereby undermining the credibility of Van Kuffeler.
In a note to investors, analysts at stockbroker Goodbody said that the error could prove that Kuffeler did not get regulatory approval to run the provvy.