May 08, 2012

888 Online is under fire over high pay to executives

888 Online is the latest company to face sharp criticism over its executive pay.

The gambling firm, founded and controlled by Israeli brothers Avi and Aaron Shaked, is under fire from Pirc, the corporate governance consultancy, for failing to give any details on the targets its bosses have to hit to guarantee huge bonus payouts.

Pirc is also unhappy at the way executives who quit can still gain access to big payments, including bonuses, after their resignations.

The watchdog, which advises some of Britain’s biggest pension schemes, has urged its members to vote down the company’s remuneration report. It says the price at which shares are granted under the company’s “long-term incentive scheme” is not detailed.

It says performance conditions were not disclosed for awards to finance director Aviad Kobrine and attacks the remuneration structure for promoting “high payouts”.

“In 2011, Aviad Kobrine received 2.6 million nil costs options, of whose value cannot be ascertained due to lack of disclosure of the underlying share price at grant date,” Pirc said. It also criticises a pay-off to former chief executive Gigi Levy.

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