Disgraced former LV boss Mark Hartigan handed a £532k golden goodbye

The controversial former LV boss has been given a gold parting of more than £500,000 in what critics say is a ‘reward for failure’.

Ex-army Colonel Mark Hartigan, who quit in September after his plan to sell the mutual insurer to private equity was blocked by members, was paid £120,000 ‘on termination’.

He will also receive ten months’ salary and benefits worth £412,545, reducing his total wages to £532,545.

That was on top of a £767,000 paycheck for just nine months of work last year, including a £318,000 bonus – which followed a £511,000 bonus in 2021, the year the sale to Bain Capital fell through.

His earnings while in charge of LV totaled £3million over three years – and more than £3.5million once the gold bye is added.

Critics called Hartigan, 60, “shameless” and said the payouts were “an insult” to members of LV.

The mutual was founded in 1843 to help the poor of Liverpool pay for a decent burial for their loved ones and is still owned by its members.

But the mutual status is only maintained because members blocked Hartigan’s plan to sell LV to Bain, following a campaign by the Mail to rescue it from private equity ownership. LV said the pay honored Hartigan’s “legal and contractual rights.”

The payouts were overseen by new chairman Simon Moore and head of the remuneration committee Natalie Ceeney.

Labor MP Gareth Thomas, who heads the all-party group in parliament, said Hartigan was “shameless”.

“If Mark Hartigan had an ounce of decency, he would return every penny he received on top of his salary,” he said. Peter Hunt, of the mutual lobby group Mutuo, said it was “an insult to members.”

Hartigan retired with his reputation in tatters after his attempt to sell the company was thwarted by its 1.2 million members.

Along with former chairman Alan Cook, he agreed a £530 million deal with the Boston outfit that would have stripped LV of their mutual status. In return, members would have received a payout of £100.

The pair spent more than £30 million in membership fees preparing for the takeover.

But after a campaign by MPs, policyholders and the Mail, the sale was rejected and Hartigan and Cook were forced out. Cook was paid £33,000 last year for just two months’ work.

Hartigan has been replaced by former Bupa UK boss David Hynam and Moore has replaced Cooke.

Hunt said: “It is an insult to members that the board paid Hartigan another bonus on top of his already generous salary package, despite his entire tenure being a disaster.”

Thomas said: ‘This is a man who spent months trying to smash LV and then resigned in disgrace when members rejected his dodgy deal.

A bonus in his pocket and a golden farewell of hundreds of thousands of pounds – an astronomical sum – proves that he has learned nothing.

“Since he joined three years ago, Mr. Hartigan has fooled the members at every opportunity. The board should never have allowed his bonus to run.’

LV posted a £265 million loss for 2022, compared to £66 million in 2021, as its investment portfolios took a hit. Savings and pension trading profits fell 55 percent from £22 million to £10 million.

It shared £35 million in bonuses among eligible members.