RBG Holdings PLC (AIM:RBGP) saw its shares rise nearly 6% on Monday morning as the legal and professional services group announced the appointment of Ian Rosenblatt to its board as an executive director where he will be vice chair with a focus on strategy.
Rosenblatt, who is both RBG's largest shareholder and individual revenue generator, founded the Rosenblatt law firm in 1989 and was its senior partner until 2016.
In addition to his appointment to the board, RBG said it has also secured a further five years in the long-term commitment of Rosenblatt. He has agreed to an extension to his restrictive covenants which expired in May of the current financial year. In consideration of this arrangement, Rosenblatt will be paid a total of £2.5mln in monthly instalments over the five-year period of the restrictive covenants. There are no other changes to his compensation arrangements.
In a statement, Rosenblatt commented: "As the Group's largest shareholder, my interests are aligned with all other stakeholders, and I am fully committed to achieving this. That is my motivation for accepting the invitation to join the Board and the reason why I was happy to extend my restrictive covenants for five years. I look forward to working with the new executive team who have my full support. I thank them for their hard work to refocus the Group since their appointments."
Jon Divers, RBG Holdings' CEO added: "The appointment of Ian means we are taking the business back to its roots. His presence on the Board will greatly assist in driving the Group's strategy. I am excited to be collaborating with him on the next chapter of our journey as we concentrate on growth."
The company also announced that it is still the board's intention to recruit an additional independent non-executive director and that process is ongoing.
Around 10.30am, RBG shares were up 5.7% at 18.50p.