Tabcorp hit with strike over ‘excessive’ pay

afr.com:

Wagering giant Tabcorp was hit with a 34 per cent protest vote over executive pay on Wednesday, after it attempted to reward its CEO despite challenging market conditions and a reduction in the size of the company after spinning-off The Lottery Corporation.

It is the first strike for Tabcorp since 2018. More than 25 per cent of votes cast against a resolution are necessary to incur a strike. Lottery Corp, which held its AGM last week, skirted a strike with 23.1 per cent of votes cast against it.

Tabcorp CEO Adam Rytenskild’s salary, including cash bonus, was $2.07 million for FY23 – higher than the median CEO cash payment for an ASX 200 company.  Rhett Wyman

Bruce Akhurst, chairman of Tabcorp, said the board needed to balance long-term financial outcomes for shareholders with motivating and rewarding management.

“In determining remuneration outcomes for the year, the board has sought to balance financial and non-financial performance,” Mr Akhurst said. “The board takes feedback from shareholders on remuneration matters seriously and … will carefully consider this feedback as part of a review of remuneration arrangements.”

Tabcorp sources familiar with the votes said three major shareholders supported the remuneration report. But proxy firms Ownership Matters, ISS and the Australian Shareholders’ Association all urged shareholders to vote against the pay scheme of Tabcorp’s CEO and directors, describing them as excessive given the size of the company.

Adam Rytenskild’s salary, including a cash bonus, was $2.07 million for FY23 – higher than the median CEO cash payment for an ASX 200 company. He is also eligible for a short-term incentive of between $1.5 million and $2.3 million.

For FY23, the board awarded Mr Rytenskild