Scientific Games protects executive team as Perelman mulls selling majority stake
Scientific Games Corporation (SGC) has adopted new controls to protect the firm’s leadership structures should majority investor Ronald Perelman move to fully divest his shareholding in the Nasdaq-listed gambling technology group.
Issuing a SEC filing, SGC governance revealed that it had updated its corporate control plan, ensuring that the company’s executive team remains in place should Perelman decide to sell his 39% stake in SGC.
SGC has chosen to safeguard its leadership frameworks following July’s announcement by ‘MacAndrews & Forbes’, Perelman’s personal investment fund, that the finance tycoon had personally demanded a review of his entire investment portfolio.
Listed alongside cosmetics manufacturer Revlon, SGC was earmarked as one of MacAndrews & Forbes’ imminent reviews, with billionaire Perelman reported to be ‘resetting the empire’ in light of COVID-19’s radical impact on global markets and consumer changes.
The SEC filing discloses that Group Chief Executive Barry Cottle and five executive officers will be guaranteed their full severance remuneration based on salary and bonuses should their employment be terminated within the next 18-months.
SGC underlined that its executive protections are ‘a standard, protective measure’ – ensuring the stability of its executive team during a ‘time of transition for the company’.
Concluding its filing, SGC stated that it has had no communication from MacAndrews & Forbes with regards to a definitive plan or proposal on its SGC investment.
Source: SBC News