Late in November, we reported that Playtech investors are expected to vote on a €100 million ($109 million) executive remuneration proposal. The proposed bonus plan for key executives and new long-term incentive proposal followed the announcement about the sale of the company’s business-to-consumer (B2C) arm, Snaitech, to Flutter Entertainment in a £2.3 billion (approx. $3 billion) deal.
Shareholders Greenlight Executive Bonus Scheme
The proposed bonus scheme was up for a vote at the company’s General Meeting which concluded on Thursday. Surprisingly, despite opposition by investors, a majority of the shareholders voted in favor of the remuneration plan.
When asked to “approve the Playtech plc Shareholder Incentive Plan (Directors),” an estimated 67.36% of the shareholders voted in favor, while 32.64% cast a vote in opposition. Similarly, the vote to approve and adopt the revised Directors’ Remuneration Policy received support from 59% of the shareholders, while nearly 41% voted against it.
Following the General Meeting, the company’s Board thanked its shareholders for their engagement and participation that helped pass all of the proposals. Still, the Board acknowledged the opposition the resolutions faced, adding that it will continue to collaborate with its shareholders and provide an update on this progress after six months.
“The Board of Playtech is grateful for the engagement of its shareholders in advance of the General Meeting and is pleased that all Resolutions were passed. The Board notes, however, the level of votes against the Resolutions. Playtech will continue to engage with its shareholders regarding the implementation of the Resolutions and, in accordance with the UK Corporate Governance Code, the Company will publish an update on its continued engagement within six months of the General Meeting,“
Playtech explained in a statement detailing the results of its General Meeting
Remuneration Proposal Passes Despite Opposition
As noted, the executive remuneration bonus was passed despite opposition from some shareholders. The proposal faced pushback from two investors back in October who condemned the compensation calling it “obscene.” One of the investors claimed that the compensation was the “most egregious case of shareholder value expropriation in the history of UK public markets.”
However, the opposition’s voice remained unheard, especially considering that the Resolutions needed only 50% support from shareholders in order to pass. Per the proposal, a total of €134 million ($139.4 million) would be distributed as remuneration to senior-level executives in light of Flutter’s acquisition of Snaitech.
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