SBC News Voice of the Sports Betting Industry
The board of Playtech Plc has announced that a General Meeting will be convened on 19 December to allow shareholders to vote on the directors’ remuneration policy.
The vote is needed to settle disputes over Playtech’s €100m remuneration scheme for executives, linked to the LSE-listed firm’s sale of its Snaitech Italia business to Flutter Entertainment for €2.3bn.
A segment of shareholders has deemed the planned rewards as “obscene” and “egregious”, with Group CEO Mor Weizer set to receive a €50m cash bonus.
The scheme will compensate Group CFO Chris McGinnis with a £12m reward, with the remaining funds to be allocated among twenty Playtech executives.
The remuneration policy, however, has found support from shareholders controlling 34.38% of Playtech’s stock, primarily based in Asia.
Asian investors have played a significant role in shaping the scheme, increasing the likelihood of its approval during the December vote. Notably, these same shareholders were responsible for blocking the £2.1 billion takeover of Playtech by Aristocrat Leisure in 2022.
Playtech has defended the €100m scheme, stating that it is critical to align the company’s leadership with its strategic goals and ensure the successful delivery of shareholder returns following the Snaitech sale, which sees the company return to its role as a pure-play B2B gambling technology business.
As previously disclosed by dealmakers, the outstanding proceeds from the sale, estimated to be between €1.7bn and €1.8bn, will be returned to shareholders.
In addition to the controversial bonus pool, Playtech has proposed a new five-year incentive plan designed to offer further long-term rewards to its executives. This scheme has raised additional questions about corporate governance and executive pay practices within the company.
The timing of the announcement has added to the controversy, coming shortly after the resignation of Anna Massion, Chair of Playtech’s Remuneration Committee. Her departure, effective February 2024, has been linked to the ongoing disputes over executive pay, although the company maintains that she left to pursue other opportunities.
Playtech’s board has urged all shareholders to vote in favour of the remuneration policy, arguing that it is necessary to maintain and enhance the company’s position as a leader in gambling technology. With the General Meeting approaching, the outcome of the vote will determine whether Playtech can proceed with its proposed reward structure or if it will face further opposition from its investor base.
