Party Execs share deals....

Richas · #1 12-31-2006, 06:31 PM

Not sure if this is relevant here but I'll try to make it so...recently there were rumours of Party reentering the US market, probably sourced from inside Party but this news is of a share bonanza for the execs (paid for by the founders who want to keep it listed). Anyway it's news of the legislative fall out....for some. Party aint coming back any time soon.

[ QUOTE ]
PartyGaming's senior management will share a cash and shares jackpot of more than £40m in the next three years under a new remuneration policy unveiled yesterday. The move is likely to infuriate institutional shareholders as the awards have no link with the performance of the online gaming business.

Under the new scheme, chief executive Mitch Garber will pocket almost £19m - including free shares worth £2.2m he received this year - merely for staying until 2009. Group finance director Martin Weigold will receive £5.64m if he remains until the end of 2008. A further 50m shares - worth £15.875m at yesterday's closing price - will be shared among other key employees.

[/ QUOTE ]

Richas · #2 12-31-2006, 06:33 PM

Sorry the link:
http://business.guardian.co.uk/story/0,,1980072,00.html

BluffTHIS! · #3 12-31-2006, 06:42 PM

Yeah I read that story in another Brit paper and the reasoning they gave for the big bonii despite the share price and revenue declines was a need to "incentivize key executives". What a joke trying to keep executives who presided over such declining corportate fortunes, even if a large part of same is attributable to external forces like the UIGEA. And now that they are forced to concentrate on Europe and other areas, there are moves in several European countries to make online poker illegal, even if such efforts might ultimately, as seems likely, run afoul of the EU and have to be modified or totally repealed.

Garber's crew, especially in underestimating the probability of such legislation passing at a correct range, and to consider taking themselves private to re-enter the US market, have shown themselves to be anything other than agile and nimble. They are just doing what so many other executives of other corporations do when they lack integrity, get all they can get while they can get it, regardless of how the shareholders fair.

Berge20 · #4 12-31-2006, 06:57 PM

Random aside,

What is the official EU position on this stuff? Still up to the national governments to handle gambling?

Richas · #5 12-31-2006, 08:55 PM

[ QUOTE ]
Random aside,

What is the official EU position on this stuff? Still up to the national governments to handle gambling?

[/ QUOTE ]

EU is very strongly pro cross border business and trading. UK has online gaming legalised and regulated - my estimate of the EU now going against a regulated, legal, industry is about 0.000001% in the next decade, if that. They will beat up the US in the WTO on this instead.

Sniper · #6 12-31-2006, 10:09 PM

Link to PartyGaming Press Release on this

Bottom Line: The founders gifted an additional 40 Million shares to the Trust that handles employee stock options... this is part of an attempt to retain key employees and keep their compensation inline with what they were expected to receive prior to the US pullout. The vesting schedule for existing options were also modified.