Pay rules hitting Paddy Power - McGann
Paddy Power faces problems getting top talent because it's a UK-listed PLC, when many of its competitors are not, according to the bookie's chairman Gary McGann.
Writing in the company's newly-issued annual report, Mr McGann says: "One of our greatest challenges is in relation to the formulation of remuneration arrangements that facilitate retention, recruitment and motivation of key senior executive talent", adding that competitors face "fewer remuneration constraints than UK publicly listed companies".
Mr McGann did not specify the specific restrictions he had in mind, but UK PLCs with a premium listing like Paddy Power Betfair have to tell shareholders how they are implementing the principles of the UK corporate governance code. The code is not compulsory, but works on a "comply or explain" basis - leaving companies open to shareholder backlash if they don't comply.
A new code is in place for accounting periods starting on or after January 1, 2019, but the previous code had various provisions around remuneration including around performance-related pay. "Performance-related elements should be transparent, stretching and rigorously applied," the code says. Last year the company's boss, Peter Jackson, got a package of more than £1.6m.