Addressing executive remuneration at Paddy Power Betfair (PPB) first ever AGM, Chairman Gary McGann stated that the company had implemented a ‘fair, transparent and balanced’ policy.
McGann noted concerns on the matter, following 32% of shareholders voting against PPB’s executive pay report at the meeting.
PPB’s Chairman stated that the divide stemmed from a change in the new group’s long term incentive plan (LTIP) which rewards executive with share compensations on meeting set targets post-merger.
Defending his firms position, McGann stated that the LTIP changes were made in order to align both companies’ long term interests, and the new remuneration policy would help the firm maintain its leadership talent.
McGann would further reiterate that PPB’s new remuneration report would come at no extra costs for its shareholders, stating that company stakeholders would see its long term value.
“It is worth bearing in mind that the aspects of the remuneration report that dissenting shareholders are uncomfortable with primarily relate to the historic past decisions, with little or no ‘go forward’ aspects to it,” McGann commented
“significant shareholder value has been created so far, with the company set for significant future success and shareholder value creation”
PPB’s defence of its executive remuneration policy comes a week after being criticised by shareholder advisory group Pensions & Investment Research Consultants (PIRC) which urged investors to reject the €3.7 million pay package of former Paddy Power CEO Andy McCue which it deemed as ‘excessive’ following the completed merger of the two companies.