Shareholders of Australian racing and wagering giant Tabcorp on Wednesday issued a strike against the company’s executive pay on concerns pay and bonus amounts exceed recent performance levels.
While shareholders approved four of five resolutions put forward at Tabcorp’s Annual General Meeting, 34.08% voted against adopting the Remuneration Report. A strike is recorded any time more than 25% of shareholders vote against a resolution, and a second strike next year could result in a spill motion.
Tabcorp paid its Managing Director and CEO, Adam Rytenskild, AU$2.07 million (US$1.31 million) in FY23 and has awarded a short-term incentive bonus of AU$1.14 million (US$719,000) – half of it deferred to equity for two years. Tabcorp Chairman Bruce Akhurst earns AU$493,300 (US$311,260) a year and non-executive directors AU$160,000 (US$100,955) a year.
In addressing Wednesday’s AGM, Akhurst acknowledged the lack of shareholder support but argued the company has been “very focused on maintaining alignment between management and shareholders, and has implemented what it believes are appropriate incentives against demanding targets for management to deliver the expected benefits for shareholders.”
If these targets are met, Akhurst added, “they will deliver material growth and value for shareholders. We see it as very important that management incentives completely align to our strategy and end objective of growing shareholder value.
“In determining remuneration outcomes for the year, the Board has sought to balance financial and non-financial performance, the unique strategic context in which the company is operating, and the need to retain and continue to motivate management to deliver our complex turnaround strategy.
“The Board takes feedback from shareholders on remuneration matters seriously and following the outcome from today’s meeting will carefully consider this feedback as part of a review of remuneration arrangements going forward.”
In a lengthy address, Akhurst also referenced Tabcorp’s efforts to “level the playing field” with the corporate bookmakers it competes with in the Australian market, having successfully lobbied to have Point of Consumption taxes levied on those corporates increased in multiple states nationwide.
In particular, he said the company has seen “significant improvement in the performance and profitability” of its Queensland business since the state’s POC tax was increased in December 2022.
“A significant consequence of a level playing field will be a greater contribution from all wagering operators to the industry and its participants,” he said. “It will also allow us to compete fairly with foreign bookmakers for the first time. This will be a great outcome for all of Tabcorp’s stakeholders.”
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