Betting bosses are big winners
While fund managers and investors are nursing heavy financial losses from the plummeting value of shares in the internet gambling industry, some bosses have bagged pots of money from generous share packages.
The bonanza will stun those who have looked on in astonishment, as £3.5bn has been knocked off the sector in the days after America signalled its plans to ban online poker, roulette and sports betting.
The victims aren't just the speculators who staked their cash on the success of the sector - but the City funds who have lost much more. These are the people managing the savings of m
Any day now President Bush is expected to sign a bill that could wipe yet more off the already waning value of the industry. But while the bosses of these firms may say that they feel your pain, the collapse of online gambling isn't exactly hitting them in the wallet.
Take Sportingbet. Its annual report reveals departing chief executive Nigel Payne owns 1.5m share options, with a guaranteed share price of £2.15 - nearly triple Monday's 73¾p close (up 3¾p) and worth £3.3m.
Meanwhile, finance director Andrew McIver, who takes over from Payne later this month, has 500,000 share options on the same basis. Both would have to exercise the options between January and December next year and Sportingbet has set aside £5.1m in case they do. A spokesman said the board was reviewing the set-up but declined to comment further.
The m
A large chunk of these options has dived in value, but Segal and Weigold are unlikely to complain because they didn't pay for them in the first place. PartyGaming said the award was to 'attract them to the company prior to the offer to incentivise and reward them for successfully floating the company'. Unfortunately it didn't persuade Segal to stay - he left less than a year after the company's debut on the stock market.
He forfeited m
Weigold made £4.26m in PartyGaming's listing and was handed 12.3m worth of share options, vesting at quarterly intervals over four years. Segal's successor, Mitch Garber, was granted 27m share options on joining - including 7m, currently worth £2.73m - that will vest in his first year of employment. The remaining 20m are exercisable over the next four years, depending on the share's performance.
PartyGaming declined to comment, but a source close to the company pointed out that the share options were given by the founders and so came at no cost to incoming shareholders at the company's float. Small comfort for investors looking at a 350pc drop in the share price since its 176p August 2005 high.
John Anderson, the boss over at 888, has followed Segal's lead and decided to cash in his chips. He didn't do quite as well as his mates at PartyGaming - but he did all right.
He received options on 1% of the company at float and sold 1.7m shares at the time, making £3m. He also has an option on another 1.6m shares, vesting over the next three years. Chief operating officer Gigi Levy, who takes over from Anderson at the end of the year, was given 1.35m shares, currently worth £1.4m, and 1.1m share options.
PartyGaming and 888 now appear to be far more frugal with their free shares. But many investors will probably feel it's too little, too late.
STEINBERG WALKS OUT ON EMPIRE
Lord Steinberg is quitting his role as chairman of internet gambling group Empire Online. A source close to the Tory Party donor insisted his decision to step down was unrelated to the fall-out from the US ban currently rocking the industry and follows his plans to retire from the same role at Stanley Leisure after its takeover by Malaysian conglomerate Genting.
He will be replaced at Empire by senior independent non-executive director Richard Rosenberg at the end of this month.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Paul McCartney's psychedelic Wings 1972 double-decker tour bus
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mail Online takes a tour of Gatwick's modern EV charging station
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Greg Clark urges officials to roll out red carpet to...
- Investors are pulling money out of UK funds on a worrying...
- London's Alternative Investment Market sees liquidity...
- I'm jealous of my husband's dead ex-wife - she was rich...
- Billionaire Czech Sphinx bidding for Royal Mail 'would...
- Britain 'must lay out red carpet' to retain top tech firms
- CITY WHISPERS: Are Darktrace's big shareholders prepared...
- Water firms drowning in sea of debt as borrowing 'bigger...
- Baroness Bowles: Nationwide using sneaky tactics to avoid...
- Older workers will sustain growth, says HAMISH MCRAE: We...
- Savers withdraw £5bn from current accounts in bid for...
- Secrets of the new King Charles bank notes that took ten...
- Disney set to report jump in profits just weeks after...
- Shipping firm Clarksons set for EIGHTH pay revolt as boss...
- ODYSSEAN INVESTMENT TRUST: Newcomer's knack for seeing...
- Should you take out insurance to spare your family from a...
- Elderly father duped into £25k debt by scam company Marks...
- Are MPs paid silly money? I don't think so, says Tory...