Tabcorp has named former Australian Football League (AFL) Chief Executive Gillon McLachlan as its new CEO and Managing Director.
McLachlan will begin his role on 5 August, subject to regulatory approvals, and will be compensated with an annual fixed remuneration of AU$1.5m (US$991,800).
This appointment follows the resignation of former CEO Adam Rytenskild in March, who stepped down amid allegations of using ‘offensive’ and ‘inappropriate’ language in the workplace.
Analysts at Jefferies noted: "Tabcorp has been without CEO since 24 March and given the variety of initiatives ongoing within the company, the appointment of Gillon McLachlan should be seen as positive."
Following the announcement, Tabcorp shares increased by 1.5% to AU$0.67 as of 04:57 GMT, after an earlier decline of 3.8%. The company's stock has fallen nearly 22% this year, primarily due to a first-half loss linked to a one-off non-cash impairment charge in its wagering and media business.
McLachlan served as the AFL Chief Executive for a decade, overseeing revenue growth and expansion. His experience in negotiating media rights deals is expected to play a crucial role in Tabcorp’s future strategies.
In recent developments, Tabcorp was fined AU$370,417 by the Melbourne Magistrates’ Court for failing to prevent underage gambling at various venues in Victoria. The Victorian Gambling and Casino Control Commission (VGCCC) issued 43 charges against the company, which pleaded guilty to the breaches.
