An investigation into Endeavour Mining reveals $15 million in undisclosed payments, while an emerging trend sees London-listed companies, including Flutter, considering moves to New York for better valuation and shareholder returns.
Endeavour Mining has disclosed findings from an investigation revealing undisclosed payments totaling $15 million to a third party, initiated after the firing of former CEO Sébastien de Montessus over a suspect $5.9 million payment. The investigation, carried out by Linklaters and EY, implicated de Montessus and other executives in these payments, misleadingly documented as contractor transactions. The payments were traced to an entity in Ras Al Khaimah, UAE, with no evidence of bribery or transactions with sanctioned bodies found. De Montessus defended the payments as legitimate, challenging the company’s claims about their nature and purpose. Endeavour Mining is now seeking to recover part of de Montessus’s notable remuneration from his tenure as one of the highest-paid CEOs in the FTSE 100 in 2021.
Meanwhile, an observable trend sees London-listed companies, including the renowned Paddy Power owner Flutter, considering or making the shift to New York in search of better shareholder returns. This move is partly attributed to more favorable valuations in the US markets, the FTSE 100’s underperformance compared to the Dow Jones, and Brexit implications. This migration raises concerns about the London Stock Exchange’s (LSE) future vitality, alongside record-low domestic institutional ownership of UK equities at 4.2%. Although the British ISA initiative aims to boost retail investments in UK equities, experts suggest a need for institutional investors to refocus domestically to counteract the emerging trend of relocations and support the LSE’s stability.
