PENN Entertainment has announced a board reshuffle that includes the potential appointment of Johnny Hartnett and Carlos Ruisanchez amid growing investor pressure from HG Vora.
Both Hartnett and Ruisanchez were put forward as nominees by HG Vora, the activist investor in the operator that previously accused PENN of “reckless spending” as part of a brutal assessment issued in January.
The duo will be nominated for board member roles by the operator ahead of the upcoming annual general meeting, following discussions with HG Vora management, according to PENN’s official update.
Hartnett has swathes of experience within the sector, having previously held the role of Superbet CEO for four years between 2019 and 2023, which followed a 20-year stint at Flutter Entertainment.
While with the FanDuel parent company, Hartnett held several key positions, including chief development officer (CDO), where he spearheaded the company’s M&A efforts.
Meanwhile, Ruisanchez is the co-founder of hospitality group Sorelle Capital and Sorelle Hospitality.
He also has significant igaming experience, having served as CFO and president of Pinnacle Entertainment, up to the point of its sale in 2018.
Ruisanchez spent a decade with Pinnacle, holding multiple key positions, such as executive vice-president of strategic planning and development.
At the start of the year, HG Vora also pushed for the addition of William J. Clifford to the PENN board, given his knowledge of the company after a 12-year tenure as PENN CFO between 2001 and 2013.
However, the operator has not put him forward as a third nominee.
A statement from PENN’s board noted: “We look forward to benefitting from Johnny’s and Carlos’ fresh perspectives as we enter into a critical phase for the business.
“The board continues to believe there is significant opportunity for value creation at PENN, particularly within our interactive segment.
“Johnny and Carlos bring critical expertise and experience in the gaming industry, across both digital and retail, that are aligned with the board’s priorities and are tailored to the opportunities in front of us.
“While we were unable to reach an agreement with HG Vora, [over Clifford] we thank them for their input and look forward to continued engagement with all of our shareholders.”
In the same release, the operator confirmed that Ron Naples, an independent director at the company since 2013, would retire from PENN’s board with immediate effect.
Additionally, Barbara Shattuck Kohn and Saul Reibstein have informed the firm that neither intends to stand for re-election at the upcoming shareholder meeting.
PENN’s board added: “We thank Ron, Saul and Barbara for their many years of distinguished service to the board and our company and we are eager to begin working with our new directors to drive profitable growth for the benefit of all PENN shareholders.”
As a result of the reshuffle, PENN’s board now consists of eight directors, seven of which are independent.
The news comes four months on from HG Vora founder Parag Vora insisting that change was “urgently needed” after the investment firm declared PENN’s interactive strategy an “abject failure”.
Arnold Ash is EGR’s Executive Recruitment Partner. They support ambitious organisations to identify and attract industry leading executive talent. Find out more here.
The post PENN announces board reshuffle months after scathing investor assessment first appeared on EGR Intel.
Operator confirms the additions of Johnny Hartnett and Carlos Ruisanchez, both of which were nominated by activist investor HG Vora, while trio of directors expected to depart
The post PENN announces board reshuffle months after scathing investor assessment first appeared on EGR Intel.