Magellan Financial details terms of Hamish Douglass consultancy role

Magellan Financial Group will pay Hamish Douglass $400,000 per annum for his investment expertise in his new role as an investment consultant to the global fund manager.

Hamish Douglass will start providing consulting services to Magellan Financial in October. Picture: Britta Campion

Magellan Financial Group will pay Hamish Douglass $400,000 per annum for his investment expertise in his new role as an investment consultant to the global fund manager.

Mr Douglass will start providing consulting services from October, but won’t start earning the consulting fee until February 7, a date that aligns with the notice period of his previous roles.

The global fund manager’s co-founder and former CEO, chair and chief investment officer retired in February after taking a medical leave of absence after a disastrous run during the pandemic. That included a massive outflow of funds due to a weak investment performance, the resignation of CEO Brett Cairns and the loss of its biggest investment mandate, St James’s Place.

In a notice of its annual meeting in October, Magellan said that in response to stakeholder feedback, it wanted to provide further detail in relation to Mr Douglass’s consultancy role, announced on June 9.

“In his role, Mr Douglass will provide valuable investment insights to the business,” Magellan said. “Having regard to the scope and frequency of the services, the fees payable are commensurate with the fees paid to other consultants engaged by the group.

“The board considers that Mr Douglass remains an important resource for the company.”

Mr Douglass is Magellan’s biggest shareholder, with an 11.65 per cent stake now worth about $256m after he sold at least 760,000 shares in late June.

In the 2022 financial year, during which he served as chairman until February 7, his take-home pay was $2.73m.

In a letter to shareholders, Magellan chairman Hamish McLennan thanked Mr Douglass for “founding and building a great business and for his contribution over many years”.

The details of Mr Douglass’s remuneration in his consultancy role came along with an announcement that independent non-executive director, Ms Karen Phin, has informed the company of her intention to retire from the Magellan board at the conclusion of the AGM.

Ms Phin joined the board as an independent non-executive director in April 2014 and served as a member of the Audit and Risk Committee and as a member of the Remuneration and Nominations Committee since her appointment.

“The board change is part of Magellan’s ongoing board renewal program and the process of appointing additional independent, non-executive directors is well underway,” Magellan said.