GVC's CEO volunteers for a USD 189,000 salary cut after 'feedback' from investors

In its latest annual report, GVC’s remuneration committee “recognises that the ‘single figures’ of total remuneration shown for the chairman and CEO are substantial”.

2019-05-30

United Kingdom

Reading time 1:51 min

His total remuneration for the company’s latest financial year was £19.1 million (USD 24 M), thanks to a “legacy award” linked to the company’s takeover of the online gaming firm bwin.party in 2015. GVC has said these takeover-related payments have now been made in full and won’t be repeated. This change will take effect from 1 June 2019, four days before its annual meeting in Gibraltar.

The Chief Executive Officer of GVC Holdings has taken a £150,000 (USD 189,000) pay cut in an effort to prevent a shareholder rebellion at next week’s annual meeting over his £19.1 million (USD 24 M) pay package.

GVC, which owns the bookmakers Ladbrokes and Coral as well as multiple online betting brands, said its CEO, Kenny Alexander, had volunteered to have his basic salary reduced from £950,000 (nearly USD 1.19 M) to £800,000 (USD 1 M) after “feedback” from investors, The Guardian reported.

The Isle of Man-based company suffered a shareholder revolt last year when 44% of investors voted against pay schemes that awarded its top two executives, including Alexander, deals worth a combined £67m. His total remuneration for the company’s latest financial year was £19.1 million (USD 24 M), thanks to a “legacy award” linked to the company’s takeover of the online gaming firm bwin.party in 2015.

GVC has said these takeover-related payments have now been made in full and won’t be repeated. But the scale of the successive awards was expected to put the company on course for another clash with investors at its annual meeting in Gibraltar on June 5.

In a statement released on its website on Wednesday, first reported by Sky News, the company sought to allay any lingering concerns among investors via a voluntary agreement by Alexander to take a £150,000 cut in his basic pay.

“After consulting with GVC’s chairman and remuneration committee chair, GVC’s chief executive officer has volunteered to reduce his annual salary from £950,000 to £800,000,” the company said. “This offer was made in light of recent shareholder and proxy adviser feedback on GVC’s 2018 remuneration report and on our remuneration committee chair. This change will take effect from 1 June 2019.”

GVC, which bought Ladbrokes in a £3.2bn deal last year, appeared to acknowledge that the payouts could prove controversial in its latest annual report, released earlier this month. It said the company’s remuneration committee “recognises that the ‘single figures’ of total remuneration shown for the chairman and CEO are substantial”.

“Our new policy framework will result in significantly lower levels of total remuneration from 2019 onwards,” it said.