Embattled ladbrokes chief received package worth £4.7m in 2013
March 18, 2014 7:52 pm
Embattled Ladbrokes chief received
package worth £4.7m in 2013
By Roger Blitz, Leisure Industries Correspondent
Ladbrokes’ embattled chief executive Richard Glynn last year received a package
worth £4.7m, an 85 per cent increase on his 2012 remuneration.
Mr Glynn’s basic salary of £580,000 remained unchanged, as did his pension
allowance of £131,000. But under his long-term incentive plan, he received
£3,983,000 worth of shares compared with £1,323,000 the previous year.
His total package in 2012 was worth £2,545,000.
Mr Glynn’s future was discussed by the Ladbrokes board in the autumn following a
profits warning. Its 2013 operating profits fell by a third and its pre-tax profits
slumped by two-thirds.
Last month, Peter Erskine, chairman, warned that Mr Glynn “hasn’t got any more
Ian Bull, finance director, saw his package nearly treble in size from £735,000 to
£2,106,000. His basic salary increased from £380,000 to £397,000 and his long-
term incentive plan was worth £1.6m.
Ladbrokes said that Mr Glynn and other executive directors had voluntarily not sold
any shares and so had been “exposed to the decrease in share price in the same way
as all other shareholders”.
The company’s shares have fallen by a quarter since August and closed on Tuesday at
Ladbrokes has two elements to its incentive plan – a performance share plan and
what it calls a “Ladbrokes Growth Plan”.
Under the former, senior directors are awarded proportions of share pots based on
Ladbrokes’ shareholder returns and earnings per shares in the last three years as
measured against its peer group.
Under the growth plan, aimed at incentivising directors to turn round the business,
they earned 40.7 per cent of the shares available because shares exceeded 220p for a
30-day consecutive period in the first quarter of last year. Shares awarded to Mr
Glynn and Mr Bull were vested at 210p.
“Richard and Ian both agreed last year not to exercise any growth plan shares until
July 2014 at the earliest so none of the shares under this award have been touched,”
Mr Glynn did sell 90,595 shares on February 25, when shares were valued at 151.61p,
to cover income tax and national insurance contributions when the shares were
vested at 179.8p.
Ladbrokes added: “Although 2013 was a challenging year, we maintain our view that
the business has progressed on its journey to be more competitive and is in a
materially stronger position today than it was when the scheme started.”