Alexander’s great blunder
Gambling conglomerate gVC is in great danger of becoming the new Persimmon as the company’s leading lights rack up rapacious riches and ride roughshod over governance norms.
Such practices were bad enough at Persimmon, which uses taxpayer funds in the shape of Help to buy to deliver housing.
but they are unconscionable and exploitative at gVC, which has turned the great british love of a flutter on the gee-gees into a global gaming addiction.
The company had to be browbeaten into lowering the stakes allowed on ‘crackcocaine’ gaming machines and recently felt compelled to do a partial U-turn on betting advertising on TV sports coverage.
a pledge, incidentally, riddled with holes, including the right to advertise during horse-racing broadcasts.
When it comes to the welfare of their own executives the isle of man-based group, which owns the Queen’s bookie ladbrokes and Coral, shows no humility.
Chief executive Kenny alexander was paid £19.1m last year thanks to what is curiously described as a ‘legacy award’ linked to its takeover of online gaming group bwin.party in 2015. One shudders to think what legacy horrors will be disinterred from the far larger ladbrokes takeover.
One might have thought that alexander and his chairman lee Feldman, who received a pay package of £8.5m, might have learned from last year’s shareholder revolt when 44pc of investors voted against combined awards of £67m.
more socially aware souls might have thought it wise to inject the awards into a trust dealing with gambling addictions. but bookies are not used to giving anything back to the saps who fund their luxury life.
The latest outrage comes on top of the sale this year of shares in gVC to the value of £13.7m, sending the price down by 18pc and punishing all other investors in the same way that the firm delivers pain to gamblers every day.
it is unacceptable that chairman lee Feldman, whose job it is to stymie the excesses of the chief executive, should be part of the legacy awards. He already has exceeded his nine years in office and reports suggest he plans to leave at the 2020 agm.
One hates to think of the gVC rewards to our old friend andy Hornby, veteran of the HbOS collapse. He acts behind the scenes because his past precludes a frontline role.
The time has come for gVC to adopt governance reforms. Domicile in the isle of man should not be an option for a FTSE 100 company with a market value of nearly £4bn.
it needs a powerful chairman capable of keeping the excesses of alexander and his coterie in check. Shareholders who allowed ladbrokes to fall into the hands of an offshore upstart have reaped a bitter harvest.
Sour grapes
a DiViDEnD increase and promises to spruce up 400 shabby stores will not rescue the reputation of Sainsbury’s chief executive mike Coupe.
The failed effort to merge with asda was doomed from the start in spite of expensive and flawed competition advice from City lawyers. investors and employees should not forgive the £48m thrown away on adviser fees and the monumental waste of executive time while rivals won market share.
Coupe embarrassed himself with the barbs aimed at the Competition & markets authority after it put the interests of consumers and suppliers first.
Sainsbury’s is not a busted flush. it delivers high-quality produce and it is no accident that it avoided being caught up in the horsemeat scandal.
The acquisition of argos, its catalogue and logistics give it a huge advantage in developing non-food offerings with better margins. and at a time when banks have alienated customers by closing branches and removing aTms, Sainsbury’s has an opportunity to provide easy-to-access services which we all crave.
There may also be merger opportunities. Tesco and the Co- op, for instance, have benefited from sweeping up smaller chains. Time for big rethink at the top.
Jolly japes
briTain’S most emblematic holiday destination, butlin’s, plans to give Center Parcs a run for its money.
it has just opened a £40m seaside-inspired pools complex in bognor regis, replete with the world’s first Helter Skelter water ride and colourful stick-of-rock slides. Eat your heart out, brighton Pier.