Playtech suffers investor revolt over chief executive’s pay
Shareholders have expressed concern over the company’s pay policy after it issued a profit warning.
Playtech’s shareholders have revolted against the board at the company’s annual general meeting, voting against the firm’s pay plans and its chairman.
Playtech, which specialises in the development of gambling technology, has proposed raising the pay of its chief executive Mor Weizer by 78%.
Mr Weizer’s pay rose to £4.2m in 2017, up from £2.3m the year before, despite the firm issuing a profit warning.
On Monday, shareholders criticised the pay package, with 59% of votes cast at the AGM coming out against the firm’s remuneration report.
Investor advisory groups Institutional Shareholder Services and Glass Lewis both recommended that shareholders rebel over Mr Weizer’s pay.
Shareholders also lashed out at Playtech’s chairman Alan Jackson, who sits on the company’s remuneration committee, and John Jackson, chairman of the remuneration committee, for their role in setting pay.
A total of 43% of votes cast went against John Jackson while 35% of votes opposed the re-election of Alan Jackson.
In a statement, the company said it will review who sits on its remuneration committee, and that it is looking at potential candidates for non-executive positions on the board.
“We have listened to our shareholders and we understand their concerns,” Alan Jackson said.
“We are committed to working with shareholders to address the issues raised going forward.”
Following the vote, Playtech’s share price fell 3.24% or 26.6p, closing the day at 793.8p.
Ashley Hamilton Claxton, head of responsible investment at Royal London Asset Management, said: “This is another case where a company has failed to listen to its shareholders’ concerns.
“We have consistently voted against pay at Playtech since 2015, and find it concerning that the board has taken this decision, despite negative feedback from shareholders.”