General Betting
Welcome to Live View – Take the tour to learn more
Start Tour
There is currently 1 person viewing this thread.
You are ****ing kidding me!!!
http://www.guardian.co.uk/business/2011/jul/25/betfair-bosses-huge-pay-increases?utm_source=web&utm_medium=twitter
http://www.guardian.co.uk/business/2011/jul/25/betfair-bosses-huge-pay-increases?utm_source=web&utm_medium=twitter
Show More
If they get paid for performance alone it would be the minimum wage.
You just know that their next CVs will state: "increased Betfair profitability by £xxx", without stating that the long-term future of the company has been ruined. In 5 years time when a competitor has taken Betfair's place, they'll be long gone but still claiming a success.
David Yu, the soon-to-be-former chief executive of Betfair, and Stephen Morana, the betting exchange's finance director, banked increases in pay last year despite presiding over one of the most disastrous flotations in City memory.
The total package for Yu, who told the board last month that he would be stepping down, rose by 125% last year to £824,676, according to Betfair's first annual report as a public company. That rise was trumped by Morana, however, who got a 445% increase to earn £1.6m in the year to April. Since the company floated in October, its shares have slumped by 50% from £13 to close on Tuesday night at 653.5p.
The sums awarded to Yu and Morana were inflated by the so-called "senior executives' incentive plan" (SEIP), which saw Yu receive an extra £300,000 and Morana £1.2m.
The report stated: "The 2010 SEIP granted certain senior employees and executive directors one-off conditional awards consisting of a cash amount and an award of nil-cost options on admission to the stock exchange. Under the terms of the SEIP, 50% of the options will vest and become exercisable on the first anniversary of admission and the remainder will become exercisable on the second anniversary of admission, subject to continued employment ... The company does not intend to make any further awards under the SEIP."
Betfair, which was founded in 2000 by current chairman Ed Wray and Andrew Black, became one of the UK's biggest dotcom success stories. However, despite an encouraging start to life as a public company, it has struggled to convince doubters that it is really worth anywhere near its initial £1.4bn valuation.
The annual report also reveals that Yu and Morana "were conditionally awarded 130,000 and 100,000 fair market value options respectively, as well as 15,000 nil-cost options each. These options will normally vest on the third anniversary of grant and are subject to two corporate financial performance conditions."
The total package for Yu, who told the board last month that he would be stepping down, rose by 125% last year to £824,676, according to Betfair's first annual report as a public company. That rise was trumped by Morana, however, who got a 445% increase to earn £1.6m in the year to April. Since the company floated in October, its shares have slumped by 50% from £13 to close on Tuesday night at 653.5p.
The sums awarded to Yu and Morana were inflated by the so-called "senior executives' incentive plan" (SEIP), which saw Yu receive an extra £300,000 and Morana £1.2m.
The report stated: "The 2010 SEIP granted certain senior employees and executive directors one-off conditional awards consisting of a cash amount and an award of nil-cost options on admission to the stock exchange. Under the terms of the SEIP, 50% of the options will vest and become exercisable on the first anniversary of admission and the remainder will become exercisable on the second anniversary of admission, subject to continued employment ... The company does not intend to make any further awards under the SEIP."
Betfair, which was founded in 2000 by current chairman Ed Wray and Andrew Black, became one of the UK's biggest dotcom success stories. However, despite an encouraging start to life as a public company, it has struggled to convince doubters that it is really worth anywhere near its initial £1.4bn valuation.
The annual report also reveals that Yu and Morana "were conditionally awarded 130,000 and 100,000 fair market value options respectively, as well as 15,000 nil-cost options each. These options will normally vest on the third anniversary of grant and are subject to two corporate financial performance conditions."
a 445% increase to earn £1.6m
how many new punters do they need each year just pay 1 directors salary?
how many new punters do they need each year just pay 1 directors salary?
and I was criticised for saying betfair are greedy and grabbing money and vainly trying to bolster the share price
what was that message about the staff not getting bonuses !!!!
I said in another thread that the reason reported profits were down could be due to huge fat cat salaries and bonuses, maybe I was right.
How are nil cost option awards accounted for in the UK ?
I wonder what the financial package for the next CEO will look like ?
Would imagine there will be quite a few " hard " financial performance hurdles will be put in it.
But executive pay in all areas of industry has gotten totally out of whack with the real world. So what's new or different about the pay packages of Yu and Morana, to all the other greedy little piggies out there ?
And let's face it, even if they each took a pay cut of (say) 50%, or gave back their nil cost options, would it really make any dent on the so-called need for extra revenues from the big hitters, which is the " deemed " reason for the PC.
It's certainly not a good look timing wise, but what is these days in the corporate world in general ?
Not being an aplogist here btw, just a realist.
Would imagine there will be quite a few " hard " financial performance hurdles will be put in it.
But executive pay in all areas of industry has gotten totally out of whack with the real world. So what's new or different about the pay packages of Yu and Morana, to all the other greedy little piggies out there ?
And let's face it, even if they each took a pay cut of (say) 50%, or gave back their nil cost options, would it really make any dent on the so-called need for extra revenues from the big hitters, which is the " deemed " reason for the PC.
It's certainly not a good look timing wise, but what is these days in the corporate world in general ?
Not being an aplogist here btw, just a realist.
Could it even be that the top 70 earners in Betfair make more money then the company itself 
Yeah maybe some of the big hitters would have to take a pay cut to become the next CEO ? That is if they had to turn off their bots to qualify for the position.
If these options only vest 1 and 2 years after the company floated, then the directors are looking at a pretty hefty implied loss compared to the value of the options at the float price.
Possibly the company mgt. talked up the value of the shares beyond a realistic level thinking that a certain fraction of a large amount was better than what they might otherwise had got.
Maybe the directors will not (or at least Stephen Morana) will not exercise their options but wait for the price to come back. The upshot for punters cd be the adoption of policies that the City think best suit a growing exchange.
Possibly the company mgt. talked up the value of the shares beyond a realistic level thinking that a certain fraction of a large amount was better than what they might otherwise had got.
Maybe the directors will not (or at least Stephen Morana) will not exercise their options but wait for the price to come back. The upshot for punters cd be the adoption of policies that the City think best suit a growing exchange.
This is not what you want to read just after eating. Feel sick.
The thing that bugs me every time, with statements of peoples
wages, is the use of the word "earn"!
Very few people "earn" millions of pounds a year imo!
I mean, for example, do footballers "earn" several million pounds
a year, for playing a game, that many play for nothing but the enjoyment!
wages, is the use of the word "earn"!
Very few people "earn" millions of pounds a year imo!
I mean, for example, do footballers "earn" several million pounds
a year, for playing a game, that many play for nothing but the enjoyment!
These people really do earn it though Aunty Post. Look at the innovations down the years. Non runner = void bet, the betfair SP, multiples (3 years after betdack) and the PC. If these guys were football players they could have played for Stockport.
Why don't the shareholders sack them?
That's the way these things work.
That's the way these things work.
Hasnt been a public vote for board positions since float yet.
Hasnt been a public vote for board positions since float yet.
But I thought Betfair was only about everyone taking their fair share? Surely they should be charged PC, we need equity for the suspend boys who perhaps aren't as sharp 
i seen mr yu in soho last week..i shouted "hey yu" he looked and said "who me?" and said "yes yu"...
Post Your Reply
Please login to post a reply.
Wonder
Instance ID: 13539