Playtech Proposes a Bonus Plan for Executives and Faces Criticism from Shareholders

By Todd Winkler,
Editor at online-gambling.com

Todd Winkler Editor at online-gambling.com

Todd Winkler is another one of our highly professional editors at online-gambling.com. The expert has been part of our team for 6 years, during which time he contributed articles regarding poker, blackjack, and DFS. Winkler is also knowledgeable about New Zealand's legal gambling market.

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Last updated: October 11, 2024

The iGaming industry developer Playtech is facing backlash from some of its shareholders over a proposed bonus plan for its senior executives, including its CEO Mor Weizer. The proposed bonuses are in total, over $110 million. This is followed by the recent sale of the company’s Italian gambling platform, Sanitech.

Bonus Plan Details

This $110 million bonus plan was announced by Playtech on the same day of the deal for selling Sanitech to Flutter Entertainment for over $2.5 billion. Although exact details are not yet disclosed, this proposed plan would benefit the CEO of the company the most. The other aspect that riled up the shareholders is the clause that states that the executives would be entitled to 10% of any future disposal gains.

After the sale, a separate bonus plan of over $37 million is planned for the management team of the Italian gambling platform Sanitech. In the same fashion as with Playtech, the CEO of Sanitech, Fabio Schiavolin, is planned to get the largest share of the bonus money. One of the main reasons for the shareholder backlash is the lack of performance targets.

Shareholders’ Viewpoint

The part of shareholders that view this bonus plan as unnecessary advises that the proposal is unjustified. A Playtech investor Jeremy Raper deems this move as “the most egregious case of shareholder value expropriation in the history of UK public markets.”

On the other hand, another major investor, Peter Smith of Palm Harbour Capital, argues that these bonus payments come from a large cash inflow without any other reason. In the end, despite the criticism, Playtech has obtained support from a majority of the shareholders, representing 34.4% of the company’s stock. The bonus plan will hold a final shareholder vote by the end of November 2024.

Additional Info About the Company

Playtech is one of the leading companies that develops gambling software for online casinos. In May 2024, the brand issued an update covering its performance in the first four months of 2024. Playtech is experiencing solid revenue growth and increased performance in its B2B division.

Thanks to its Sanitech brand, its foothold on the Italian gambling market has grown and shown great results since its struggles in 2023. Playtech has seen a growth in its stock price of over 14% in the last six months. Due to the success of its Italian brand, it was sold to Flutter Entertainment for over $2.5 billion.