Online gambling operator 888 Holdings on Friday defended the reappointment of long-serving board member Brian Mattingley as non-executive chairman after his reelection was opposed by a significant number of the company’s shareholders earlier this year.
Mr. Mattingley first joined the Gibraltar-headquartered online gaming and betting operator in 2005. Over his years with the company, he has served as CEO, non-executive director, executive chairman, and non-executive chairman.
During 888’s annual general meeting in Gibraltar this past May, about 21.3% of the company’s shareholders opposed Mr. Mattingley’s reelection. All other proposed directors received overwhelming support during the same meeting.
888 said back then that it would engage in discussions with shareholders who rejected the reappointment of Mr. Mattingley. The company said on Friday that some investors expressed concerns over the length of his tenure.
As mentioned above, Mr. Mattingley joined 888’s board in 2005. Between March 2006 and March 2012, he served as non-executive director. He was then appointed Chief Executive Officer of the gambling operator until March 2016.
In May 2015, Mr. Mattingley stepped in as executive chairman of the company’s board and in March 2016 was elected as non-executive chairman.
Under UK corporate governance rules, directors are not expected to serve on a company’s board for more than nine years. A longer tenure is deemed “a detriment to their independence.”
888 Upholds Non-Executive Chairman’s Reappointment
The FTSE 250-listed company said Friday that its decision to reappoint Mr. Mattingley was based on his “wealth of gambling industry and public company experience, deep knowledge of the business and industry contacts” and that all these factors would certainly benefit all shareholders.
888 also noted this week that it is in the process of monitoring other potential non-executive director appointments and that it would provide more information on the matter before the company’s next annual general meeting in May 2020.
With Brexit looming, 888 confirmed in September that it was planning to relocate at least some of its operations from Gibraltar, where its corporate headquarters is located. The company’s CEO, Itai Pazner, said back then that they were in the early stages of opening an office in Spanish tax haven Ceuta.
The executive further revealed that things would not change much for their Gibraltar operations at first and that they would probably “open a parallel team” in Ceuta, before deciding on more significant shifts.
Spanish media outlets reported this week citing Mr. Pazner that 888 has begun the first wave of hiring of their Ceuta staff. The company still needs to find office space, hire lawyers and consultants, and get everything else needed to set up a new operation.
888’s move to Ceuta would also see the company benefit from the Spanish enclave’s tax regime, under which it would be required to pay a 10% tax on revenue. Spain is 888’s second largest European market, behind only the UK.
Source: 888 Holdings defends reappointment of long-serving chairman, ShareCast
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