Atlas Funds Management chief investment officer Hugh Dive said Magellan’s retention plan could dilute shareholder value and did not look like it would effectively incentivise staff because the share price had a long way to go before the options could be cashed.

“It doesn’t look good. If the share price doesn’t get up to $35 by 2024, they’re worthless.”

Mr Dive said portfolio management jobs are currently in demand, adding “cold hard cash” would be more effective. “Magellan is going to be pretty hard work for the next few years,” he said. “There are a lot of other options out there, other jobs, that are easier.”

Generally speaking, Mr Dive said retention plans were a sign a company was under pressure. “You only see retention plans when there are lots of problems in an organisation and people have alternatives.”

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