Tern Plc (LSE:TERN) has announced a significant overhaul of its remuneration framework, cutting fixed pay for its board and executive team while pledging to share proceeds from successful investment exits with shareholders. As part of the new structure, key executives will see their base salaries reduced by 50%, with future compensation more closely tied to performance.
The company has also committed to distributing at least 50% of net proceeds from any investment exit exceeding £1 million, aiming to more directly align management incentives with shareholder value creation. This shift reflects Tern’s ongoing focus on maximizing returns from its portfolio while maintaining disciplined cost control.
Despite the strategic changes, the company continues to face financial headwinds, including declining revenues and sustained negative profitability. Technical indicators point to a bearish market trend, and valuation remains under pressure due to a negative P/E ratio and the absence of dividend payouts.
About Tern Plc
Tern Plc is an investment company focused on supporting early-stage, high-growth businesses in the disruptive Internet of Things (IoT) sector.
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