Britain has 'cultural problems with business', warns Darktrace chairman

Mr Hirst (centre) says it will be «very dangerous»; for Britain to ignore the appeal of higher wages in the US

The chairman of Darktrace has said the UK has a «cultural problem with business», just days after he oversaw the £4.2bn sale of a cyber security company to an American private equity giant Tom Bravo

Gordon Hirst, who has chaired Darktrace's board since 2021, said UK companies had found it difficult to compete with US rivals due to stricter rules on executive pay and a lack of support for entrepreneurs.

He said: “I I honestly think there is a problem with business culture in the UK. They just don't talk about it positively enough. I don't think he's been given the support and praise that he should be given.»

Mr Hirst's comments will raise concerns about London's ability to compete as a financial centre, as bosses grow increasingly frustrated by falling valuations. compared to competitors in America.

The possibility of replicating US-style pay packages has been at the center of this debate.

The chairman of Darktrace said it would be “very dangerous” for Britain to ignore the appeal of higher wages in the US, especially as this creates a problem in hiring the best talent.

He said: “Much of the expertise needed to run fast-growing technology companies is located in the States. I think we, like the UK, need to remember this.”

In accepting the takeover deal last month, Darktrace's board said its «achievements were not commensurately reflected in its valuation as the shares trade at a significant discount to its global peers.»

Thoma Bravo's bid for At 620 pence per share, Darktrace is valued at a 44% premium to its recent share price, significantly higher than the £1.8 billion it was valued at when it floated three years ago.

The company is expected to had no plans to move its listing overseas, although the takeover would remove Darktrace from the London Stock Exchange.

Mr. Hurst, who has just been named chairman of an asset management startup. Cadro joined Darktrace's board in 2019, having spent 19 years as group finance director at Capita.

He was also keen to raise concerns about the «attitude problem» towards entrepreneurship in the UK, which he believes is holding back the creation of new companies.

Cadro, which is backed by Literacy Capital, founded entrepreneurs Natasha Williams and Jordan Buck two years ago, targets high-net-worth clients and connects them with professional advisers through a personalized investment app.

On his appointment at Cadro, Mr Hurst said: “Opportunities for innovation in wealth management significant. Kadro's technology is an extremely attractive proposition for today's investors, as evidenced by the popularity it has seen so far.»

He also previously served as chairman of anti-fraud startup Featurespace, another business backed by Mr. Lynch.