Playtech Shareholders Approve Controversial Executive Bonus Plan Amid Opposition
Despite facing significant opposition, Playtech shareholders vote in favour of a hefty executive remuneration scheme following the sale of its B2C arm, Snaitech, to Flutter Entertainment.
- Around 67% of Playtech shareholders voted for a €100 million executive bonus scheme.
- The decision follows the sale of Snaitech to Flutter Entertainment for approximately $3 billion.
- Despite strong opposition from some shareholders, labelling the compensation “obscene,” the plan was approved.
- Playtech pledges to engage with shareholders and provide an update on the implementation progress in six months.
In a move that surprised many, the gambling technology company Playtech shareholders approved a controversial executive bonus scheme. This approval came after Playtech sold its business-to-consumer (B2C) arm, Snaitech, to Flutter Entertainment in a deal worth about $3 billion. The decision to approve the bonus scheme unfolded during the company’s General Meeting, concluding a debate that has seen strong opposition from a segment of the investor community.
Playtech Shareholders Showdown
The spotlight was on Playtech’s General Meeting this Thursday, where a proposal for a staggering €100 million ($109 million) executive remuneration was on the table. The scheme, earmarked for key executives, follows the lucrative sale of Snaitech to Flutter Entertainment. Despite significant pushback from some investors—two of whom branded the proposed compensation as “the most egregious case of shareholder value expropriation in the history of UK public markets”—67.36% of shareholders voted in favour, with 32.64% against.
Furthermore, a motion to approve and adopt a revised Directors’ Remuneration Policy suffered a similar fate, garnering support from 59% of shareholders and leaving 41% in opposition. Following the vote, Playtech’s Board thanked its shareholders for their active participation and acknowledged the controversy the proposals had stirred. The company pledged to continue its dialogue with shareholders and promised an update on this engagement within the next six months.
The Controversy Behind the Approval
Despite the assertions of two investors back in October who condemned the executive compensation package as “obscene,” their opposition did not manage to sway the broader shareholder base. With the resolutions requiring a simple majority (over 50%) to pass, the executive remuneration bonus of €134 million ($139.4 million) was approved.
This decision is pivotal for Playtech as the company navigates the aftermath of its notable deal with Flutter Entertainment. The Board’s commitment to maintaining open lines of communication with its shareholders signifies an awareness of the dissent and a readiness to address concerns comprehensively.
However, this episode raises broader questions about shareholder democracy and the balance between rewarding corporate leadership and ensuring fair value distribution among stakeholders. As Playtech charts its future course, the decisions made at this General Meeting will undoubtedly serve as a critical reference point for the company and its investors.
Check out our Playtech casinos in the UK. Flutter Entertainment owns the following sites: PokerStars Casino, Betfair Casino and Sportsbook, and PaddyPower.
Peter is our Editor-in-Chief at Gamblingauthority. He has more than eigth years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
Read more about the authorLatest news
