Our views

Playtech faces shareholder concerns on pay


Ashley Hamilton Claxton

14 May 2018

This is another case where a company has failed to listen to its shareholders’ concerns. Playtech saw more than 32% of shareholders vote against its pay proposals last year, and it tried and failed to pass a pay plan that would grant a one-off award to the CEO of over 1.5 million shares. Following this defeat, the Board has now approved a 66% salary increase for the Chief Executive. 
This significant uplift to base pay will also substantially increase the value of any annual bonus and long-term awards, which are also calculated as a percentage of salary. We have consistently voted against pay at Playtech since 2015, and find it concerning that the Board has taken this decision, despite negative feedback from shareholders. 
Furthermore, we’d question the Board’s decision to award the CEO a bonus at 93% of the maximum total pay-out, despite only just meeting the threshold of the financial performance targets. 
Therefore, we’ll be voting against both Playtech’s remuneration report and the re-election of all of the directors that sit on the remuneration committee.

This is another case where a company has failed to listen to its shareholders’ concerns. Playtech saw more than 32% of shareholders vote against its pay proposals last year, and it tried and failed to pass a pay plan that would grant a one-off award to the CEO of over 1.5 million shares. Following this defeat, the Board has now approved a 66% salary increase for the Chief Executive. 

This significant uplift to base pay will also substantially increase the value of any annual bonus and long-term awards, which are also calculated as a percentage of salary. We have consistently voted against pay at Playtech since 2015, and find it concerning that the Board has taken this decision, despite negative feedback from shareholders. 

Furthermore, we’d question the Board’s decision to award the CEO a bonus at 93% of the maximum total pay-out, despite only just meeting the threshold of the financial performance targets. 

Therefore, we’ll be voting against both Playtech’s remuneration report and the re-election of all of the directors that sit on the remuneration committee.

Past performance is no guide to the future. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.