Playtech shareholders clash over CEO pay rise
Mor Weizer set to receive 78% annual pay increase despite the supplier’s 2017 profit warning
Playtech faces a backlash from investors and shareholders over a 78% pay increase for CEO Mor Weizer in 2017 despite the gaming supplier issuing a profit warning for the year.
Weizer was paid almost £4.2m in 2017, up from £2.3m in 2016, for his “exceptional leadership” despite a slowdown in profit growth and regulatory concerns in Asia.
According to the Financial Times (FT), two large shareholders warned they would vote against the pay report, a threat echoed by Alan Jackson, chairman of the board who also sits on the remuneration committee, and John Jackson, the remuneration committee chairman.
The board reportedly has long-running concerns about pay and corporate governance at the firm.
The FT also said leading proxy providers Institutional Shareholder Services and Glass Lewis, have called on Playtech shareholders to rebel over pay, “citing concerns about excessive awards and the disparity between remuneration outcomes and company performance”.
Glass Lewis said: “We are especially troubled by the significant salary increase granted to the company’s CEO and lack of transparent information surrounding the bonus outcome adjustment.”
Playtech has often clashed with shareholders over remuneration fees, with almost one third of shareholders voting against its pay proposals last year.
Playtech said in response: “We are listening to shareholders and we strive to hit the balance of the parameters appropriate for a plc by making sure that we have a competitive remuneration policy.”
It was a similar story at UK bookmaker William Hill in May when 30.7% of investors voted against a pay rise for chief executive Philip Bowcock.