Playtech shareholders have given the green light to a senior management bonus plan following the €2.3 billion (£1.9 billion) sale of Snaitech to Flutter. At a general meeting held on December 19, the initiative was supported by 59.04% of the FTSE 250 company’s investors. This approval came from 148,939,100 votes in favor, while 40.96%, equivalent to 103,317,987 votes, opposed the plan. Additionally, 1,309,976 votes abstained from the decision.
The endorsement paves the way for Playtech’s top executives to potentially receive a combined bonus pool totaling €100 million. This sum will be distributed in three installments: the initial 60% will be issued upon the sale’s expected completion in the second quarter of 2025, with the remaining 40% divided equally over the first and second anniversaries of the transaction’s closure. Among the potential recipients, CEO Mor Weizer could receive up to €50 million, and CFO Chris McGinnis might be eligible for €12 million.
The rationale for the bonus, as communicated before the meeting, highlights the value returned to shareholders. Playtech commented that this payment honors the significant value delivered through the sale and serves as a retention tool post-sale. Furthermore, Playtech shareholders are set to gain between €1.7 billion and €1.8 billion upon finalizing the deal.
However, the bonus plan faced criticism from some investors, including Raper Capital and Palm Harbour Capital. Jeremy Raper of Raper Capital criticized the bonuses as a “way to divert value from stockholders to management.” Meanwhile, Peter Smith from Palm Harbour Capital referred to the payouts as an “extravagant reward for a straightforward managerial action” in selling Snaitech.
Despite the contentious views, Playtech expressed appreciation for the shareholders’ involvement leading up to the meeting. The company assured continuous engagement on the resolution implementation and committed to providing an update within six months as per the UK Corporate Governance Code.
Originally featured on EGR Intel, this article highlights the consensus among Playtech shareholders regarding the executive bonuses linked to the Snaitech sale.