At extraordinary general meeting 27.5 percent of shareholders vote against exec incentives
Online gambling group GVC Holding‘s remuneration committee had a torrid time at the company’s extraordinary general meeting this week, according to a company announcement that showed 27.5 percent of investors voted against a new directors’ remuneration policy, and 26.4 percent objected to a new annual and deferred bonus plan.
Not that investors have much to complain about in terms of returns – total GVC shareholder returns have reached 3,000 percent in the past decade through Management’s aggressive acquisition strategy, which has included larger rivals like Sportingbet and Bwin… and now Ladbrokes Coral is in the GVC crosshairs.
The Telegraph newspaper reported Thursday that CEO Kenneth Alexander’s pay package has soared 430 percent to GBP 19.5 million, according to the company’s 2016 financial reportage. This was largely fuelled by GVC share price increases which enhanced his shares incentive in the company by around 79 percent.
In a company announcement Thursday remuneration committee chairperson Jane Anscombe said the committee had spoken to shareholders prior to the egm and knows why some voted against its pay proposals.
“The principal reason was that some shareholders disagreed with the remuneration committee’s view that the maximum incentive levels proposed were necessary to incentivise and retain the company’s high performing management team, in a market where experienced and successful management are rare,” Anscombe said, adding that she planned to re-engage with disgruntled shareholders to further discuss their concerns, which would be taken into account in the future.