Investor advisory body PIRC has urged Betfair shareholders not to approve a proposed pay packet for the betting exchange’s chief executive, Breon Corcoran, at the company’s annual general meeting next week.
According to the Irish Independent newspaper, PIRC said that Corcoran’s bonus of nearly £953,000 (€1.33 million/$1.49 million) is excessive, as is his total remuneration. The report said that Corcoran is due to receive £11.6 million, including a £10 million golden ‘hello’ payment that was allocated to him when he joined the company in 2012.
PIRC said that Betfair’s financial performance does not justify the pay received by Corcoran, as total chief executive pay over a five-year period at the company “is not commensurate with the change in total shareholder return over the same period”.
However, even a vote by shareholders against Corcoran’s pay packet will not make any difference, the report added.
Corcoran has been lined up to lead the combined Betfair and Paddy Power group when the two companies complete a merger, with the proposed deal announced last week.
PIRC has advised shareholders to vote in favour of his reappointment, but the advisory body has also advised shareholders not to approve the reappointment of KPMG as auditors.
“KPMG has been in place as auditor for more than 10 years,” PIRC said. “There are concerns that failure to regularly rotate the audit firm can potentially compromise the independence of the auditor.”
The annual general meeting will take place in London on Wednesday.
