SpringOwl, a US-based Hedge Fund, which is coincidentally a 5% equity owner of Playtech Plc has voiced their concerns about serious issues with executive pay policy in the gambling technology provider.
The dispute has been going on for quite a while now, but it was about a completely different topic. Namely the financial processes of the company, which has been seeing quite a lot of damage in 2018. In more detail, the company lost more than 50% of its share price, which led to investors scrambling for solutions. No matter how surprising it may be, the modification of the Executive Board was not the first idea that came to mind, which has now led to an even further complication.
According to ForexTradingBonus, the CEO of the company, Mor Weizer, who has been at the head of the company for over 12 years now, has scored a 78% raise for himself amidst the financial turmoil the company is going through.
Is that even legal?
Nobody really knows how this past the watchful eye of the investors, but the fact is that Weizer has been enjoying extra cash as compensation, rather than additional stock holdings in the company.
Since investors were already unhappy, this news was like gasoline on a raging fire, and therefore sparked the wrath of SpringOwl, who was just having none of it.
Other investors were also appalled and refused the election of Alan Jackson as Corporate Chairman, as a show of protest. According to SBC News More than 60% of investors voiced their disappointment when the remuneration report was published, which revealed Weizer’s raise. Many investors came to think that this was a planned effort, as there was no way of keeping the secret hidden for long, it needed to appear at least somewhere in the papers.
If it was a 78% raise on a single lower rank employee, such a reaction would definitely not have been the case, but this is the CEO that’s involved in all this. Which means that millions of dollars were re-directed into his account rather than be used for the improvement of previous mistakes of 2018.
No matter how one may look at it, Playtech will definitely see it’s stock prices fall even lower after such drama. Probably the only solution at this point to stabilize the situation is to lay off Mor Weizer.