Paddy Power Betfair faces shareholder revolt over executive pay
Newly-merged firm says rewards scheme helps align long-term interest of both brands
Paddy Power Betfair (PPB) faced a minor shareholder revolt over executive pay yesterday, as one third of shareholders voted against its current director’s remuneration package.
Specifically, 31.8% of shareholders voted against the rewards scheme at Wednesdays’ AGM, while 68.2% supported it.
The newly-formed company has faced criticism from shareholder advisory group Pirc in recent months for the payouts given to former Paddy Power CEO Andy McCue, as well as the amount of shares handed to executives.
McCue took home ?3.7m in 2015, his only year as Paddy Power’s chief executive.
It was also revealed McCue had been given a safety net allowing him to leave the firm with a payout 2.5x his annual salary should he feel his duties and responsibilities had been diminished by the merger.
Betfair has previously been targeted by Pirc after CEO Breon Corcoran reportedly received a pay package worth ?11.6m when he joined the company in 2014.
PPB chairman Gary McCann defended the company’s long-term incentive plan (LTIP) at the AGM, saying it helped align the two brands’ long-term goals.
“The specific circumstances of the merger posed unique challenges, and therefore the boards made prudent decisions following careful consideration with the primary intention being to retain talent,” he said.
“Given that the merger was one of equals, it was agreed to have equal treatment of employees of both companies,” added McCann.