Tabcorp shareholders have approved CEO Gillon McLachlan’s renumeration package which could be worth over A$17m (£8.2m), despite facing opposition from the Australian Shareholders Association (ASA).
Last October, McLachlan was granted 30 million shares with a fair value of A$0.10 as part of Tabcorp’s long-term incentive plan. The operator’s share price at the time was A$0.47.
At the same time, managing director Mark Howell was granted 6.2 million shares
Those options will vest if certain financial targets are met in 2027.
The CEO’s package caused concern among the ASA, who said prior to the AGM: “The ASA does not favour the use of options because their pricing is opaque and can result in outlandish payouts well in excess of the ordinary shareholder’s experience.”
Despite this, shareholders voted through the package at Monday’s AGM by more than 96%.
The payout was questioned during Tabcorp’s AGM by the ASA’s Steven Van Emric.
However, Tabcorp chair Brett Chenoweth said the operator believed the former AFL head has “outperformed” in his role so far and justified the financial outlay.
He said: “All I can say is we are very happy with the structure of the remuneration for our chief executive.
“We’re very happy about his performance. We think he’s outperformed during the year as we’ve mentioned.
“The future for this company is strong based on Gillon and his team’s performance here.
“The option scheme does reward our entire team on a long-term basis, again, entirely appropriate given the growth we’ve had.
“Just to remind you, the share price this time last year that was when the option scheme was approved was many, many levels below what it is today.
“So we’ve had good growth during the year. We think it’s perfectly aligned to aspirations.”
Tabcorp’s FY 2025 financial results showed revenue was up 11.8% year on year (YoY) to AU$2.6bn, with EBITDA jumping 23.2% YoY to AU$391.5m.
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The post Tabcorp shareholders approve CEO’s renumeration package first appeared on EGR Intel.
Despite opposition from the Australian Shareholders Association, Gillon McLachlan could receive upwards of A$17m if targets are met
The post Tabcorp shareholders approve CEO’s renumeration package first appeared on EGR Intel.