Playtech Shareholders to Vote on Controversial €100m Bonus

Playtech’s €100m executive bonus plan is under fire as shareholders prepare for a decisive vote.
The controversial scheme, tied to the €2.3bn sale of Snaitech, faces criticism for its size and lack of benchmarks.
With dissent from key investors and public scrutiny mounting, the stakes for Playtech’s leadership have never been higher.
Explore the details of this contentious proposal and what’s at stake for the gaming giant’s future.

Playtech’s €100m Bonus Scheme Sparks Backlash Ahead of Shareholder Vote

Key Points

1. Playtech shareholders to vote on €100m executive bonus plan tied to the Snaitech sale on 19 December 2024.
2. CEO Mor Weizer and CFO Chris McGinnis are among key beneficiaries of the highly criticized scheme.
3. Investors accuse Playtech of failing to justify the plan or benchmark it against industry standards.

Playtech, a leading iGaming technology provider, has come under intense scrutiny ahead of a shareholder vote on its €100m executive bonus scheme. The controversial plan, linked to the €2.3bn sale of its Snaitech division to Flutter, will be decided during an extraordinary general meeting on 19 December 2024.

A Divisive Bonus Plan

The proposed bonus package includes a €50m payout for CEO Mor Weizer, while CFO Chris McGinnis is slated to receive €12m. Additionally, €34m will be distributed among Snaitech’s management team. These substantial payouts have sparked backlash from investors and raised questions about corporate governance.

The scheme was introduced by a group of shareholders representing 34.38% of Playtech’s stock, primarily from Asia, who previously blocked acquisition attempts of the company. Despite their influence, opposition to the plan is growing.

Jeremy Raper, CEO of Raper Capital, labeled the plan “egregious” and urged shareholders to reject it.
“There is no attempt to benchmark the plan versus peer companies or FTSE members,” he wrote on X, calling for an outright vote against the proposal.

Leadership Changes Amid Backlash

The announcement of the general meeting closely follows the resignation of Anna Massion, non-executive director and chair of Playtech’s remuneration committee. Her decision to step down, citing the pursuit of “other opportunities,” has fueled speculation about internal divisions over the bonus plan.

Critics argue that the non-executive directors who approved the scheme are also set to receive disproportionately high fees of £300,000 each, double the industry norm.

Lack of Transparency and Justification

Investors have pointed to glaring issues in the scheme’s design, including a lack of independent evaluation. According to Raper, the package lacks input from external compensation consultants or legal firms. This absence of oversight undermines its credibility and raises concerns about Playtech’s governance practices.

The controversy surrounding the bonus plan also comes as Playtech faces mounting public scrutiny. In October, two investors criticized the scheme as “obscene,” further intensifying the debate.

What’s at Stake for Playtech?

The outcome of the December vote will have far-reaching implications for Playtech’s leadership and shareholder relations. If approved, the bonus plan risks alienating minority shareholders and damaging the company’s reputation.

“Playtech needs to demonstrate that its policies align with best practices and shareholder expectations,” said an industry analyst.

However, rejecting the plan could strain relationships with the influential shareholder group that proposed it, potentially leading to future internal conflicts.

Broader Implications for the Industry

The Playtech bonus controversy highlights broader concerns about executive compensation in the gaming sector. Industry observers note that the lack of transparent benchmarks and external validation could set a worrying precedent if the plan is approved.

Playtech’s €100m bonus scheme has divided stakeholders, sparking sharp criticism over its size, lack of transparency, and potential impact on shareholder trust. With the vote looming, the gaming giant faces a critical moment that could define its governance standards and leadership reputation.

As investors prepare to cast their votes, the industry watches closely, recognizing that this decision may influence future discussions on executive compensation and corporate accountability in gaming. Whether the scheme is approved or rejected, Playtech’s handling of this issue will undoubtedly leave a lasting mark on its legacy.