A significant shareholder rebellion has erupted at Playtech over a contentious €100 million cash bonus scheme for senior executives. The FTSE 250 gambling technology group faced strong opposition at Thursday’s general meeting, where 32.6% of voting investors rejected the proposed shareholder incentive plan.
The controversial scheme would see Chief Executive Mor Weizer receive €50 million following the pending €2.3 billion sale of the company’s Italian division, Snaitech, to Flutter Entertainment, owner of Paddy Power. Finance director Chris McGinnis stands to gain €12 million, with the remaining funds distributed among approximately 20 other executives.
This generous bonus arrangement emerged in September, triggering immediate criticism from market observers. Australian activist investor Jeremy Raper denounced the plans as “crony capitalism” and suggested they would represent “the most egregious case of shareholder value expropriation in the history of UK public markets”.
The company, established in 1999 by Israeli tech and property billionaire Teddi Sagi, had previously committed to returning between €1.7 billion and €1.8 billion to shareholders from the Snaitech sale proceeds. Beyond the immediate bonus controversy, Playtech’s proposed “transformation plan” for future executive compensation also faced significant opposition, with 38% of voters rejecting these arrangements.
Despite the considerable opposition, both measures secured approval as they required only 50% shareholder support. The company revealed that shareholders controlling 34.38% of stock, primarily Asian investors who previously blocked a £2.1 billion Aristocrat Leisure takeover bid, had pledged their support for the schemes.
The market response was notably negative, with Playtech shares closing down 1.8% at 718p, despite having risen more than 60% over the year. A company spokesperson acknowledged the voting results and promised continued shareholder engagement, though the controversial bonus scheme will proceed as planned.
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