GVC faces continued pressure over executive pay
Sky News reports that GVC Holdings investors will serve the FTSE100 betting group with one of the ‘year’s biggest revolts’ in opposition to its executive remuneration report.
The Investment Association (IA) anticipates that 40% of GVC shareholders will oppose the remuneration report, published at GVC’s upcoming annual general meeting (AGM) scheduled for Friday 5 July.
GVC governance will have to soothe investor backlash over executive pay, despite Group CEO Kenneth Alexander agreeing to reduce his basic salary to £800,000.
Nevertheless, a number of GVC shareholders are reported to be deeply riled by Kenneth Alexander and Chairman Lee Feldman’s £20 million share sale undertaken in March, a transaction which saw millions of pounds being wiped off GVC’s market capitalisation.
Since completing its acquisition of Ladbrokes Coral in March 2018, GVC’s share price has fallen by more than 25%, as the betting group’s capitalisation drops below £4 billion mark.
At present, the governance of GVC is undertaking an ‘executive search’ to find Lee Feldman’s replacement, who announced in March that he would end all ties with the FTSE betting group.
In its report, Sky News details that a number of institutional investors are unhappy with Kenneth Alexander and GVC’s executive team forecasting future profits that fall below analysts’ consensus.
Source: SBC News
