Nice to see Ladbrokes with a new man in charge! Tumbling profits mean a change of guard.
Lets hope he goes as well....I think most of their profit comes from Fruit Machines now days, though I havent been in a betting shop for a few years.
"New Ladbrokes chief Richard Glynn handed £12m wager on doubling shares"
The new chief executive of Ladbrokes has been handed a free bet potentially worth almost £12m if he doubles the bookmaker's share price over five years.
Richard Glynn, the current chairman of spread-betting company Sporting Index, will receive about 4m Ladbrokes shares under a one-off incentive scheme when he starts his new job on April 22.
The award will have no value unless Mr Glynn, 45, succeeds in pushing the shares up to £2 – effectively adding £400m to the company's market value. At that level 1m shares would vest.
Only if the shares hit 297p would all 4m shares vest, making Mr Glynn £11.9m, and adding £1.3bn to Ladbrokes' market worth. To pocket the full award, Mr Glynn also has to hold at least 1m Ladbrokes shares over the period. The shares closed 2.2 higher at 158.3p last night.
Mr Glynn, who will receive a basic salary of £580,000, emerged in recent weeks as the frontrunner to succeed Chris Bell, the current chief executive. Mr Bell, who has spent 20 years at the bookie, quit in January – though he is staying on until the early summer to oversee the handover.
His departure was partly influenced by some investor unrest – particularly following Ladbrokes' heavily-discounted £275m rights issue last October. Aggrieved shareholders are thought to have included Irish billionaire Dermot Desmond and JP Morgan Asset Management.
Peter Erskine, Ladbrokes chairman, said he sounded out some investors before announcing Mr Glynn's appointment.
Mr Erskine said his decision was influenced by the fact that Mr Glynn "hits the ground very quickly" on e-gaming – considered one of Ladbrokes' weaker areas – and by his "passion" for the role.
"He's always wanted this job. I think he will bring pride back into the business," Mr Erskine said, playing down concerns that Mr Glynn lacked public company experience.
Mr Erskine said he was "open-minded" over how Mr Glynn grows the business, adding: "If it's a deal so be it but I would prefer if we could get our own business right."
Ladbrokes is also compensating Mr Glynn for relinquishing some private interests with a further 1.177m shares, worth £1.75m, that he must hold for three years.
Mr Glynn said the company had "significant opportunities in a rapidly changing marketplace".
Some analysts expressed doubts. James Hollins at Daniel Stewart, said: "We regard the appointment as underwhelming. We do not believe that he has exemplary experience of either retail bookmaking or of diverse online betting and gaming."
He also questioned the "ongoing commitment" of e-gaming chief John O'Reilly, retail head Richard Ames and finance director Brian Wallace after being "overlooked for the top job".
Only one bet for me today a loser in the 5.30 on Goscar Rock e/w. Nothing from Bet Cat but overnight the b bet won in the basketball netting me £80, nice going guys!