Playtech implements salary sacrifice programme to protect workforce
Chief executive Mor Weizer and the Playtech executive board take 20% pay cuts in sliding salary scheme
Playtech has introduced a salary sacrifice policy to protect the long-term future of its employees, EGR Intel has learned.
The London-listed supplier has moved to address the challenges posed by the coronavirus pandemic, which has negatively impacted its land-based and sports betting business segments.
The sacrifice kicked in from 1 April and is being led by chief executive Mor Weizer, the board and the management team, who will all forgo 20% of their salaries until further notice.
The scheme is managed on a sliding scale so that the cuts do not apply to Playtech employees below a certain pay threshold.
In a video message to employees, Weizer described the salary sacrifice scheme as the hardest decision he’s ever had to make as Playtech CEO.
Playtech CEO Mor Weizer
“We want to make decisions to provide stability, certainty and job security for everyone at Playtech,” said Weizer.
“We don’t know when the crisis will be over, so we are having to make tough decisions. This has led to the most difficult decision I have ever made as Playtech CEO.
“Those with the broadest shoulders will carry the largest burden with a maximum sacrifice of 20%. The board of directors and management team, including myself, will be leading by example and taking the largest sacrifice.
“I find this a very difficult thing to ask of all of you, but we would not do it unless we were 100% confident it was the right thing for the future of our business,” he added.
The Playtech board first moved to maximise liquidity in March by suspending shareholder distributions with immediate effect, including a share repurchase programme announced during the supplier’s full-year financial results.
All shareholder returns have been suspended to preserve cash.