The vote is aimed at resolving disputes surrounding a proposed €100m executive reward scheme, linked to Playtech’s €2.3bn sale of its Snaitech Italia business to Flutter Entertainment.
Playtech Plc has announced a General Meeting on 19th December, where shareholders will vote on the company’s directors’ remuneration policy. The vote is aimed at resolving disputes surrounding a proposed €100m executive reward scheme, linked to Playtech’s €2.3bn sale of its Snaitech Italia business to Flutter Entertainment.
Divisive Executive Rewards
The remuneration plan has provoked significant controversy, with some shareholders describing the payouts as “obscene” and “egregious.” Under the scheme:
- Group CEO Mor Weizer is set to receive a €50m cash bonus.
- Group CFO Chris McGinnis will be awarded £12m.
- The remaining funds will be distributed among 20 Playtech executives.
Despite this criticism, the policy has received strong support from shareholders controlling 34.38% of Playtech’s stock, primarily based in Asia. These investors were instrumental in designing the scheme and are likely to sway the outcome of the December vote. Notably, the same shareholders previously blocked Playtech’s £2.1bn takeover by Aristocrat Leisure in 2022.
Justifying the Scheme
Playtech has defended the €100m package, claiming it is crucial to align leadership with strategic goals and ensure shareholder returns following the Snaitech sale. Having now returned to its role as a pure-play B2B gambling technology business, Playtech plans to distribute the remaining sale proceeds of €1.7bn–€1.8bn to shareholders.
Alongside the bonus pool, Playtech has also proposed a new five-year incentive plan, designed to offer further long-term rewards for executives. However, this proposal has intensified concerns regarding corporate governance and executive pay practices.
Leadership Resignation and Governance Concerns
The controversy has been further heightened by the recent resignation of Anna Massion, Chair of Playtech’s Remuneration Committee. While her departure, effective February 2024, is officially attributed to pursuing other opportunities, it has been linked to the ongoing disputes over executive compensation.
Call for Shareholder Support
Playtech’s board has urged shareholders to back the remuneration policy, arguing that it is necessary to maintain the company’s leadership position in gambling technology.
“This policy ensures that Playtech’s executives remain focused on strategic goals and shareholder returns,” the board stated.
With the General Meeting fast approaching, the outcome of the vote will determine whether Playtech’s leadership can move forward with the proposed rewards or face continued opposition from its investor base.