Shareholder and corporate governance adviser PIRC has recommended that Betfair investor’s reject CEO Breon Corcoran’s £11.5 million reward package at next week’s annual general meeting (AGM).
PIRC has recommended its actions by stating that Betfair’s improved financial performance under Corcoran leadership, has not been met with appropriate compensation/dividends for its investors.
The advisory group continues to detail that Betfair financial accounts do not enable a determination of profits available to shareholders for distribution. Therefore it advises Betfair investors for a move to reject Corcoran’s executive rewards.
PIRC has also advised shareholders not to approve the reappointment of KPMG as auditors.”KPMG has been in place as auditor for more than 10 years,” according to PIRC. “There are concerns that failure to regularly rotate the audit firm can potentially compromise the independence of the auditor”.
The governance advisory continues its conflict with Betfair governance. In September 2014, PIRC recommended Betfair shareholders reject executive rewards stating that performance benchmarks were ‘not adequate’ and performance rewards were awarded without appropriate diligence.
Regardless of the outcome of next weeks AGM vote, Corcoran has received his pay. Even if shareholders fail to approve Betfair’s remuneration report, that won’t result in any clawback.