Shareholders at under-performing Ladbrokes have criticised the company’s corporate governance with regards to former CEO Richard Glynn executive remuneration and final compensation pay-off.
Investor concerns regarding the former CEO’s compensation were put forward to Ladbrokes governance at the company’s annual general meeting held last Thursday. An estimated 40% of shareholders failed to back the remuneration policy for Glynn.
The Guardian newspaper has further reported that a group of investors have moved to vote against a pay deal for Glynn, with other investor groups abstaining deliberately.
In March Ladbrokes Plc presented a 13 point statement outlining terms for Glynn’s departure pay-off. Glynn who had served five years as CEO of Ladbrokes would receive £580,000 in salary, £130,000 in pension contributions and a further £24,000 in healthcare benefits.
Further events from the general meeting saw Ladbrokes Chairman Peter Erskine announce his intention to step down by the end of the year. Several UK news reports had stated last week that Erskine had ‘paid the price’ for his continued support of Glynn, who had failed to overhaul the business performance and implement an effective future growth strategy.
New CEO Jim Mullen replaced Richard Glynn on 20 March. Since being appointed, Mullen has been busy restructuring and reorganising the operator senior management team which has witnessed multiple changes as the operator adjusts to new market conditions.