Standard Life set to consider minimum windfall
Standard Life is set to offer all eligible policyholders a minimum windfall in a bid to get maximum support for its planned demutualisation, it was reported today.
The group’s directors are planning to meet next month to decide what the minimum windfall payment for members will be if it lists on the London Stock Exchange.
They are understood to be considering offering a fixed payout of between £250 (€363)and £500 (€726) to all of the 2.4 million policyholders who are eligible to vote on the move and who will qualify for a payout if the flotation goes ahead.
A further variable windfall will be paid on top of this based on how long people have held their policies and how big they are.
Total windfalls for members are likely to average around £1,000 (€1,450), according to a report in the Telegraph newspaper.
It is thought likely the minimum payout will be closer to £250, rather than £500, as this would be seen to be fairer by the regulator and the courts as it would favour people with larger policies who had been members of the group for longer.
However, setting a minimum payout for everybody could persuade some policyholders who would only have been in line for a small payout based on the size of their policy and the length of time they have held it to back the board.
The group is understood to want at least one million of the 2.4 million policyholders with voting rights to take part in the ballot.
It needs 75% of policyholders who vote to do so in favour of the flotation for it to go ahead this summer.
A Standard Life spokesman declined to comment on how big any flotation windfall would be at this stage.
But he added: “This is not a done deal. We need 75% of those who vote to vote in favour so we can proceed with a flotation and we need a big turnout.”
