The chief executive of Betfair and Betfair Sportsbook, Breon Corcoran, received an £11.6 million package last year thanks to a £10 million bonus agreed upon when he joined the online gambling giant three years ago.
Corcoran’s £10.1 million windfall was awarded in shares and is in addition to his £953,000 bonus and £528,000 salary. The former PaddyPower Chief Operation Officer earned £1.3 million the previous year and a staggering £11.6 million when this golden hello was awarded.
When Corcoran joined Betfair from Paddy Power in August 2012, signed a deal that would pay him the huge amount Betfair met three financial performance targets. Two of those targets were reached, but the third removed at a shareholder meeting in January.
Betfair informed shareholders that the third target was introduced by an administrative error. 99.8% of investors agreed to the removal of the third threshold at a shareholder meeting.
The London Stock Exchange listed company has transformed under Corcoran’s guidance with UK customer numbers increasing by 250% and the share value increasing from approximately £750 million to more than £2.4 billion.
Historically, Betfair was a betting exchange but has developed a traditional bookmaking that is now flourishing. Morgan Stanley analysts state this new bookmaking business is already taking £1.2 billion worth of bets, almost as much Ladbrokes customers staked last year at £1.3 billion.
In June 2015, Betfair announced it was to increase investor’s dividends by 70% following “an excellent year.” Betfair reported operating profit of £94.3 million (up 53% on the previous reporting period) a figure aided by its betting exchange having a turnover of £55.3 billion and new customers increasing to 1.7 million (an increase of 52%).
Shares in Betfair closed at 2610.00p on July 20
Lead image courtesy of The Times
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