Playtech faces shareholder backlash over €100m bonus plan for executives
The bonuses follow the company’s recent €2.3bn sale of Snaitech to Flutter Entertainment.
Key points:
– Playtech shareholders criticise the proposed €100m bonus scheme for lack of performance targets
– The bonus follows Playtech’s €2.3bn sale of Snaitech to Flutter Entertainment
– Some investors argue the bonuses are unjustified, while Playtech maintains the plan aligns management with shareholder interests
Playtech is facing criticism from some of its shareholders over a proposed €100m ($110m) bonus scheme for its senior executives, including CEO Mor Weizer.
The bonuses follow the company’s recent €2.3bn sale of its Italian sports betting and gaming unit, Snaitech, to Flutter Entertainment.
This bonus scheme, announced on the same day as the sale, would see Weizer as the largest beneficiary, although Playtech has not disclosed the exact amount he could receive.
Executives would also be entitled to 10% of the gain from any future disposals, a clause that has sparked concern among investors.
A separate €34m bonus pool has been set aside for Snaitech’s management, with its CEO, Fabio Schiavolin, set to receive the largest share.
Some shareholders have voiced their dissatisfaction with the bonus plan, citing the lack of performance targets as a significant issue.
Jeremy Raper, a Playtech investor, condemned the proposal as “the most egregious case of shareholder value expropriation in the history of UK public markets,” while Peter Smith of Palm Harbour Capital argued that “this payment appears to have come simply because there is a large cash inflow and for no other reason.”
Despite these objections, Playtech has secured support from shareholders representing 34.4% of the company’s stock, who have committed to voting in favour of the bonus plan. The company plans to hold a shareholder vote by the end of November.
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