BusinessCompany NewsInvestors scrutinise PartyGaming options changes

Investors scrutinise PartyGaming options changes

Founders' £40m scheme attracts interest from large investors, The Guardian reports

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
Dikshit
– 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
operations.

Further reading:

PartyGaming shows its hand

Gaming FD in defiant mood

FD ditches entire stake in online gaming
firm

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor