Playtech is parting ways with its Chairman Alan Jackson, the gambling tech supplier said today in its Annual General Meeting trading statement
In today’s trading statement, Playtech said that its Board will “now turn its attention to overseeing a full, thorough succession planning process to identify a new Chairman.” Mr. Jackson took on the role in 2013. News about his departure arrived shortly after reports emerged that company investors were planning to vote against his re-election as Chairman during today’s General Annual Meeting.
Playtech shareholders have turned sour on the company due to its latest remuneration package that awarded an 18% bigger base salary and 46% bigger pension contributions to CEO Mor Weizer, although the gambling provider has issued two profit warnings in recent years.
Mr. Weizer earned a base salary of €1.13 million in 2018, up from €950,336 in 2017. However, his overall pay of €3 million for 2018 was 28% less than what he received the prior year due to a lower performance bonus.
Playtech shareholders voted down Mr. Weizer’s remuneration package during last year’s Annual General Meeting and were encouraged to do the same during this year’s company event. Investors have also been urging the company’s Board to implement changes to its remuneration policies.
Playtech Secretly Handed Its Chairman a Pay Rise
It emerged last year that Playtech had treated its Chairman to a secret £66,000 annual pay rise. Those reports surfaced shortly after the company, which supplies products to some of the world’s major gambling operators, faced its first shareholder revolt over its remuneration policies.
More than one-third of Playtech’s investors voted last year against the re-election of Mr. Jackson. As mentioned earlier, shareholder advisors have recommended that his re-election be voted down during today’s Annual General Meeting.
Mr. Jackson and his Board have been slammed for not doing enough to make sure that Playtech revised its remuneration policy in the wake of two profit warnings, the second of which was published last July.
The gambling tech company’s profit warnings were prompted by its shaky performance in Asia, which has been one of its key markets for years. Playtech said in today’s trading statement that its revenue from its non-regulated B2B gaming division was “materially lower” than the figure reported for the same period a year ago due to their “continuing shift to regulated markets as well as the drop in revenues in Asia”
The statement went on that Playtech’s management is confident that the actions taken over the past year “have delivered a strong platform for further strategic and operational progress.” The company also reiterated its guidance for adjusted EBITDA of between €390 million and €415 million in 2019.
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