Investors scrutinise PartyGaming options changes

A £40m cash payout to stop senior management leaving
PartyGaming following a drop in its share
price, is reportedly being scrutinised by the online betting group’s large
investors for breaches of the City’s corporate governance codes.

The unusually structured share and cash payouts have no link to future share
price or performance of the company, usually demanded from executive
remuneration schemes.

The scheme is also unique since it is not being paid out of shareholders’
pockets, The Guardian reported.

Instead the founders of PartyGaming, which has slipped out of the
FTSE 100 because of the US ban on online gaming, have
dipped into their own pockets to fund the lock-in arrangement.

Founders – Ruth Parasol, Russel DeLeon and Anurag
– have personally injected 40 million shares into the existing
employee benefit trust.

The three together received ?1bn when the company was listed on the stock
market in 2005, with shares floated at 116p.

Shares fell to just over 30p after US regulators forced a shutdown of US

Further reading:

PartyGaming shows its hand

Gaming FD in defiant mood

FD ditches entire stake in online gaming

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