Evolution CEO Sees 28% Pay Drop

Europe’s live casino powerhouse, Evolution, just revealed a sharp cut to executive compensation in its 2024 annual report. CEO Martin Carlesund took home €4.6 million in 2024 — down 28% from the previous year — amid a 40% drop in total executive pay. Beyond pay cuts, the company is grappling with labor unrest, rising problem gambling alerts, and growing reliance on a few key clients. Stakeholders, regulators, and investors will be watching closely in 2025 to see how Evolution navigates rising operational and social pressures.

Executive Pay Slashed, Labor Unrest Rises: Inside Evolution’s Transformative 2024

Key Points:

1. CEO Martin Carlesund’s compensation fell 28% in 2024 as executive pay across the company declined nearly 40%.
2. Evolution reported a labor strike in Georgia, highlighting tension between rapid growth and fair workforce treatment.
3. Problem gambling cases more than doubled, driven by enhanced detection and rising player volumes.

Evolution, one of the largest B2B providers in the global online gaming space, reported a significant dip in senior executive compensation in its 2024 annual report. The most notable change was CEO Martin Carlesund’s total pay package, which fell to €4.6 million, down from €6.39 million in 2023 — a 28% reduction.

The decline came as Evolution cut overall senior executive remuneration by 39.7%, from €14.35 million to €8.65 million. Carlesund’s base salary increased to €3.1 million, but he did not receive a bonus or additional performance-based awards. In contrast, the 2023 package included significant benefits linked to warrant acquisitions, which were not repeated this year.

Strategic M&A Takes a Backseat

Interestingly, the report confirmed that no capital was allocated for mergers or acquisitions in 2025. While Evolution recognizes M&A as a strategic growth tool, the company said it will only pursue deals that clearly align with long-term shareholder value.

This marks a cautious shift after years of aggressive expansion through acquisitions such as NetEnt, Red Tiger, and Big Time Gaming. Now, the company is focusing on organic growth and cost-efficiency, signaling a more conservative fiscal outlook.

Revenue Reliance on Top Clients Deepens

Despite serving around 800 B2B clients, Evolution disclosed that 46% of total revenue came from just five clients in 2024 — up from 41% in 2023. One client alone contributed approximately 13% of net revenue.

This concentration presents a key risk. The loss of any top-tier customer could significantly impact revenue, earnings, and operational stability. Evolution acknowledged this vulnerability, noting that it “could have a material adverse effect” on business continuity.

Labor Disputes Underscore Growing Pains

The company’s rapid global growth also came under scrutiny in 2024. A labor strike in Georgia, home to one of Evolution’s major studios, brought attention to rising worker dissatisfaction. Employees demanded higher pay and better working conditions, spotlighting a disconnect between corporate performance and employee satisfaction.

CEO Carlesund attributed the incident to “external sabotage” but acknowledged operational stress. Evolution swiftly implemented contingency plans to reroute operations and ensure uninterrupted service, including capacity increases at other studios.

Despite the conflict, the company highlighted its commitment to fair pay, diversity, and international employment standards. With a workforce of over 21,000 — 74% of whom are under 30 — Evolution boasts one of the industry’s youngest and most diverse labor forces.

Still, the company reported a gender pay gap of 11% in favor of men, attributing it to male-dominated roles in engineering and tech. Interestingly, this trend reversed in some geographies, such as Georgia, where female employees reportedly earned more on average than men.

Responsible Gambling Flags Surge 114%

The number of problem gambling alerts flagged by Evolution’s AI tools rose 114%, totaling 316,732 cases in 2024. The surge reflects not just higher player volumes (up 57%) but also better detection methods and a 60% increase in chat moderators.

Evolution also ramped up its responsible gambling training, with 76% of employees completing programs in 2024, compared to 72% in 2023. The company insists it remains committed to player protection through proactive measures.

2024 was a transformative year for Evolution. While cost controls trimmed executive pay and limited M&A ambitions, the company now faces deeper challenges. From labor unrest and client concentration risks to soaring problem gambling cases, Evolution’s operational model is under intense scrutiny. As the live casino leader prepares for 2025, all eyes will be on how it balances innovation, compliance, and sustainable growth in an increasingly demanding global market.