One-in-three Paddy Power Betfair shareholders vote against executive bonuses

Board says concerns relate to historic costs

Paddy Power Betfair chairman Gary McGann told the meeting that the large vote against stemmed from some shareholders’ concerns at the groups’ incentive scheme, which rewards executives with shares on condition that they meet certain targets.

Paddy Power Betfair chairman Gary McGann told the meeting that the large vote against stemmed from some shareholders’ concerns at the groups’ incentive scheme, which rewards executives with shares on condition that they meet certain targets.

 

Concerns at an executive bonus scheme prompted one in three Paddy Power Betfair shareholders to oppose the bookmaking group’s directors’ pay report at its first annual general meeting (agm).

Of those who voted on the motion on directors’ remuneration – which gives shareholders a chance to have their say on executives’ pay – 31.8 per cent were against while 6 8.2 per cent voted for.

Not all of the group’s shareholders had voted at by the time the agm went ahead in Dublin. The final result of a poll on all resolutions is due later on Wednesday.

Chairman Gary McGann told the meeting that the large vote against stemmed from some shareholders’ concerns at the groups’ incentive scheme, which rewards executives with shares on condition that they meet certain targets.

He explained that when the pair merged in February, the board decided “following careful consideration with the primary aim of retaining talent” that executives should have equal long-term incentive plans.

Mr McGann stressed that as management had met its performance targets, the incentives would not cost shareholders any thing.

He added that the concerns raised related to historic decisions that would not have any future impact on shareholders.