Qinetiq FD to earn £18m from float

The finance director of Qinetiq, a defence technology business, is set to
receive £18m from the float of the government-owned business, on an initial
outlay of just over £100,000.

The extraordinary gains made by Graham Love will be shared by other top
executives and an American private equity group with links to the US president,
according to an investigation by The Sunday Telegraph.

Love currently owns 0.76% of the group, The Sunday
reported, rising to 1.8% if certain performance targets are met.
Qinetiq is set to be valued at £1bn when it comes to the market later this year.

Carlyle, the American private equity firm, has a holding of 31%, set to be
worth £310m, whilst Sir John Chisholm, Qinetiq’s chief executive, will have a
stake of 2.2% assuming targets are met, worth a potential £22m. Carlyle paid
£42m for a 33% holding two years ago, since diluted, whilst Chisholm has so far
paid £129,000 for his holding.

The flotation, The Sunday Telegraph says, is likely to be
politically controversial.

Not only will there be questions over whether Qinetiq was sold off too
cheaply, but the Labour government also came to power in 1997 attacking ‘fat
cats’ who had been made rich by Tory privatisations.

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