by Renee Israel
Richard Glynn, the new Chief Executive for Ladbrokes, was handed a
welcome package worth over £1.75 million as he took over the role of the
group's head, it was reported this week.
The 45 year old was apparently given the shares as part of a deal to ensure
that he didn't lose out too much from remuneration and equity interests that he
was forced to give up from leaving his job as chairman of Sporting Index.
All in all, Glyn stands to collect £12 million if he is able to double
Ladbrokes' share prices over the next five years.
His basic salary will be £580,000, as well as 22.5% of salary per year as
a supplement instead of pension contributions.
While Glynn will most certainly enjoy his payment package, especially if he
is able to meet the expectations over the next five years, many analysts are
criticizing the excessiveness.
However, Ladbrokes Chairman, Peter Erksine slammed the critics and said that
Glynn's salary was actually 10% less than the one paid out to outgoing CE,
Christopher Bell.
Erskine also said that should Glynn manage to double share prices within 5
years, the £12 million he will receive pales in comparison to the £1.3
billion in value that shareholders will enjoy.
Glynn's appointment has been hailed as exciting for the group, as he has
"entrepreneurial energy and industry experience." His knowledge of egaming was
also a big plus. "We need to move up a gear in egaming," said Erskine. "It was
important we got somebody who could hit the ground running."
Ladbrokes' chairman did not rule out the possibility of merging with other
groups in a bid to advance its online operations. "We're open minded," he said.
"We're not in any rush to do a deal, but if it is decided that's what we need to
do, then we'll look into it."
