Shareholders should oppose £45m award to bookie chief, say advisers
Share options for Kenny Alexander, boss of Ladbrokes’ parent GVC ‘are excessive’
PIRC says share options of £44.9m given to Mr Alexander and £22.5m for GVC chairman, Lee Feldman, excessive.
Ladbrokes owns a chain of bookie shops in Ireland and offers online betting to customers based here.
Pensions & Investment Research Consultants (PIRC) says share options with a face value of £44.9 million given to Mr Alexander and £22.5 million for chairman, Lee Feldman, are excessive.
The organisation, which advises institutional investors, is calling on shareholders to oppose the directors’ pay report at GVC’s annual general meeting in London next week.
PIRC says that the options vest if the company achieves shareholder returns “above median” which is not considered challenging.
The options vest gradually over 30 months. However, PIRC notes that if conditions are not met at any one time, they can be tested again the following quarter and at the end of the 30 months.
The adviser says this infers that the company is affording directors multiple opportunities to meet the conditions.
More than 43 per cent of the shareholders voted against the directors’ pay report last year. Companies are not bound by the result of these votes.