The board of Playtech Plc has declared that a General Meeting is scheduled for December 19, allowing shareholders to cast their votes on the remuneration policy set for the directors.
This vote is crucial to resolving disagreements concerning Playtech’s €100 million executive remuneration package, linked to the company’s sale of its Snaitech Italia division to Flutter Entertainment for €2.3 billion, an entity listed on the London Stock Exchange.
Some shareholders have criticized the proposed rewards, describing them as “excessive” and “unjustifiable,” with Group CEO Mor Weizer in line to receive a €50 million cash bonus.
Under this scheme, Group CFO Chris McGinnis would receive £12 million, with the remainder distributed among twenty Playtech executives.
The remuneration policy does have backing from shareholders who own 34.38% of Playtech’s shares, mainly those located in Asia.
These Asian investors have been pivotal in shaping the proposal, making its approval during the December vote more likely. These shareholders were also instrumental in thwarting a £2.1 billion acquisition attempt by Aristocrat Leisure in 2022.
Playtech has justified the €100 million plan by emphasizing its necessity in aligning company leadership with strategic targets and ensuring the continuation of shareholder returns post the Snaitech transaction, which allows the firm to refocus as a dedicated B2B gambling technology provider.
As previously mentioned by dealmakers, the net proceeds from the sale, estimated between €1.7 billion and €1.8 billion, are intended to be redistributed to the shareholders.
Besides the contentious bonus pool, Playtech has put forward a new five-year incentive strategy aimed at offering additional long-term rewards for its executives. This proposal has sparked further debate about the company’s corporate governance and executive compensation practices.
The timing of this announcement has intensified the debate, particularly following the resignation of Anna Massion, Chair of Playtech’s Remuneration Committee. Her departure, set for February 2024, is thought to be tied to the ongoing controversies over executive compensation, although the company asserts she left to explore new ventures.
Playtech’s board is encouraging all shareholders to endorse the remuneration policy, suggesting it is essential for sustaining and advancing the company’s leading position in the gambling technology sector. As the General Meeting draws near, the result of this vote will determine whether Playtech can proceed with its proposed compensation framework, or if it will encounter ongoing resistance from its investors.