Shareholder showdown expected amid Playtech's €100m payout

Imago

The gambling tech business Playtech is expected to come under scrutiny from shareholders after it was revealed they would offer their senior team a bonus pot of €100m (£83m).

Chief executive of Playtech Mor Weizer will benefit from one of the biggest-ever payouts from a London-based company, pocketing a €50m bonus, almost half of the overall sum. This proposed award to Mr Weizer comes following the pending €2.3bn sale of their Italian business, Snaitech.

The news of the Playtech payout was first reported back in September, provoking a backlash from some shareholders branding the company’s plans as ‘obscene’ and ‘egregious’. 

Playtech is a gambling software founded by Israeli billionaire Teddy Sagi, 25 years ago, with Weizer at the helm since 2007. It has been said that between €1.7bn and €1.8bn of the Snaitech sale to Flutter Entertainment, will find itself back in shareholders' pockets.

However, it’s Weizer’s share of the pot that has caused the biggest stir, ahead of a shareholders meeting called for 19 December at the offices of Bryan Cave Leighton Paisner LLP, Governor’s House, London, EC4R 0BR.

This is where these pay proposals will be put to vote, requiring 50% approval of voting shareholders to proceed with their payout plan. It’s also emerged that Chris McGinnis, Playtech’s finance chief will receive up to €12m from the pool, with the remaining pot shared between 20 other individuals. 

In addition, Playtech also wants to set up a new five-year incentive scheme that could make further lucrative share awards to Weizer and other executives in the future.

Playtech urged its other investors to back the proposals. They said: “The revised policy has been designed to align the executive directors with the strategy of delivering returns to Playtech shareholders, both in connection with the sale and in subsequent years, while maintaining and enhancing Playtech’s position as the software and services provider of choice to the gambling sector.”