Betfair, the embattled betting exchange, has finally found itself a new chief executive, after poaching Breon Corcoran from Irish rival Paddy Power – although he will not be allowed to start work until August.
The 40-year-old, who took over as chief operating officer at Ireland's largest bookmaker last year and was always assumed to be the frontrunner for the Betfair job, will be tasked with attempting to revive the Hammersmith-based group's depressed share price, which still wallows 41% below its October 2010 flotation price.
David Yu, who announced in June that he was looking to leave following a torrid spell in the public markets, will remain at the helm until Corcoran arrives.
Ed Wray, Betfair's chairman and co-founder, said: "We went into the search with an open mind but [Corcoran] was always on the list. There were stories that he had turned us down, but I can categorically say that none of that was true."
Corcoran is well regarded in the gambling business and even some of Betfair's biggest critics concede the company has got a capable executive.
Paul Leyland, an analyst at Investec who has long advised clients to sell Betfair shares, said: "We regard him as a proven operator and intellect, especially in the remote sports betting space. However, we have three concerns. First, Betfair's grey revenue risk [revenues derived from countries where gambling is not regulated]. Second, cultural fit. Third, the need for cost cutting." He retained his "sell" recommendation with a price target on the shares of 445p.
Shares in Betfair dropped by 3% to 763.5p following the announcement, effectively back to where they started the week, when reports about Corcoran's appointment resurfaced.
Betfair declined to reveal what its new hire would be paid, despite previous criticisms over its remuneration policies. Earlier this year, Betfair stunned shareholders by handing Yu and finance director Stephen Morana total pay rises of 125% and 445% respectively – bonuses handed out as a reward for getting the inflated flotation away.
Betfair's share price has been under pressure amid concerns over online gambling regulation and taxation in foreign markets, intensifying competition and a string of defections from the company.
Wray, who has announced that Betfair is looking for a deputy chairman who will then replace him as chairman, added that it was conceivable that he could have stepped down before Corcoran arrives.
At Betfair's annual meeting in September, only 47% of the company's shares were voted in favour of Wray's re-election, and 17% actively refused to support him.
Paddy Power also made a number of appointments on Thursday, including the promotion of Peter O'Donovan, 34, to managing director of its online operations. It will not be replacing Corcoran as chief operating officer. Its shares lost just under 1%, to €38.85.