Playtech Aims To Award £30m In Shares To CEO
Boardroom drama revolving around executive remuneration packages is nothing new. The latest executive pay package to have been scrutinised rather unfavourably is none other than that of Playtech CEO Mor Weizer. The company has confirmed that it will be engaging in a special shareholders’ meeting on December 19th for the purpose of an agreement to be reached on whether or not Weizer should be awarded some £30 million in company shares as part of a long-term incentive award. Weizer has been at the helm of the leading games giant since 2007.
The latest incentive discussion follows inter-company outrage earlier on this year after it was announced that during Playtech’s AGM in May, some 41.8% of the company’s shareholders voted against its current remuneration structure. Even so, the 58.2% to have voted in favour of the pay policy is a marked improvement on last year’s 40.6% to have done so.
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New Reward Is Performance-Based
Playtech obviously hopes that by awarding shares instead of paying out lump sums in cash, the model will be perceived as being a great deal more fair and relevant. If the share price were to drop due to poor performance, the first person to feel the decline to his pocket will be chief in charge Mor Weizer.
Moreover, in order to qualify for the shares in the first place, the shares will have had to reach a share price of at least £16 a piece under the new proposed share plan. Playtech’s planned bonus scheme focuses on awarding exceptional performance only. This type of approach has become unavoidable thanks to Playtech’s recent slew of profit warnings. The company appeared to be at the heyday of its overall profit performance up to 2017, but during that year suddenly launched into a nosedive.
Profit Warning Casts Doubts
What may prove to be especially challenging when looking to gain approval for any bonus incentive is the fact that Playtech’s latest trade update was shadowed by yet another profit warning. The warning was brought about by a variety of challenges faced by the company’s trade division, namely TradeTech.
A bit of good news is the fact that Playtech was able to report exceptional performances by both its B2B as well as its B2C legs of business. Its performance in Asia was reported as having been stable too. Asia has historically proved itself to be a particularly bothersome Achilles heel for the gaming giant.
Playtech has said that it expects the proposed bonus incentive in favour of Weizer to be approved by its shareholders.