Billionaire hedge fund boss pays himself UK record of ₤ 343m

The billionaire hedge fund supervisor Sir Chris Hohn paid himself $479m last year after his Kid’s Investment (TCI) fund, taped a 66% dive in pre-tax revenues to $695m.

It is believed to be the greatest yearly quantity ever paid to a single person in Britain and corresponds to ₤ 940,000 a day. It is 9,000 times the average UK wage and 1,700 times the amount paid to the prime minister, Boris Johnson.

Hohn’s big $479m (₤ 343m) payday is considerably greater than the previous record of ₤ 323m paid to Denise Coates, the bulk investor of the wagering business Bet365, in 2018.

The incredible quantity was paid in dividends from TCI, the hedge fund Hohn established in 2003, to Hohn’s personal company TCI Fund Management (UK) Limited, according to a filing at Business House on Monday. The pay was for the year to 29 February 2020.

The represent TCI Fund Management (UK) Limited, which is 100% owned by Hohn, reveal that it holds overall shareholder funds of $1.94 bn.

Hohn, 54, formerly utilized the chancellor, Rushi Sunak, to assist run his hedge fund. Hohn, the boy of a Jamaican cars and truck mechanic who emigrated to Britain in the 1960s, hired Sunak in 2006. TCI’s aggressive project at the Dutch bank ABN Amro resulted in its sale to Royal Bank of Scotland, which was seen as a key reason for RBS’s near collapse during the monetary crisis. Hohn has actually said that deal was his and not Sunak’s. Sunak left TCI in 2009.

TCI, which holds big stakes in Visa, Microsoft, Google’s owner, Alphabet, and a controversial Canadian oil transport railway company, recorded pre-tax earnings of $695m, up from $420m the year prior to. Turnover increased from $472m to $888m.

The hedge fund, which is based in a townhouse in the Mayfair district in central London, is eventually owned by a parent business in the Cayman Islands tax haven. “The supreme parent undertaking is The Kid’s Investment Fund Management (Cayman) Limited, an entity registered in the Cayman Islands,” the accounts state. “The ultimate controlling celebration is C Hohn.”

Hohn is one of the UK’s more generous benefactors and handed out $386m through his individual charity, the Children’s Investment Fund Structure, in 2019, according to the most recent readily available accounts.

Hohn has made dealing with the climate crisis central to the objective of his hedge fund and charity, and has actually begun to target the directors of companies that fail to reveal their carbon emissions.

Hohn is the greatest single donor to Extinction Disobedience on account of the “urgent need” for individuals to get up to the climate emergency situation. “I just recently gave them ₤ 50,000 because humankind is aggressively damaging the world with climate modification and there is an urgent requirement for all of us to wake up to this reality,” Hohn said in 2019. His charity is thought to have actually vowed an additional ₤ 150,000.

The High Pay Centre’s Luke Hildyard, who campaigns versus extreme executive pay, required greater taxes on the top earners such as Hohn. “The sources of hedge fund owner’s wealth consist of the earnings of the business they purchase and the funds offered by their super-rich customers,” he said. “Extreme payouts such as this demonstrate that there is substantial scope for extremely rewarding business to pay their personnel more, and for the super-rich people that either own or purchase hedge funds to pay more tax, so that everyone can take pleasure in much better civil services and a fairer, more cohesive society.”

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