Top Betfair Man Could Be In The Money
Published: Friday, June 24, 2005 Online-Casinos.com
TOP BETFAIR MAN COULD BE IN THE MONEY
A public flotation could deliver share-based bonanza
And in a sequel to the Betfair annual report, The Times Online reports that the
chief executive of the giant betting exchange company has been given shares that
will be worth more than £10 million when the company pursues its much predicted
and anticipated stock market flotation.
Stephen Hill, a former chief executive of the Financial Times Group, who joined
Betfair in July 2003, stands to get 3.13 million shares, which have been put into
an employee benefit trust in his name.
When the shares were put into the trust this year they were valued at 271p each, equivalent to a total of £8.47 million. The mooted £500 million valuation on the possible float would push the worth of the shares to well over £10 million.
A spokeswoman said that the share award was based on the rise in the value of Betfair under Mr Hill’s tenure and was part of his terms of employment. “He doesn’t get a bonus, he doesn’t have a pension or even a company car. This is directly related to the value of the company,” she said.
Mr Hill’s pay last year rose from £269,000 to £325,000.
The firm, which would not comment on its flotation plans, is about to appoint advisers with a view to a possible listing early next year. It has shortlisted Goldman Sachs, Morgan Stanley and UBS.
The biggest shareholders are Andrew Black and Edward Wray, Betfair’s founders, who between them have almost 30 percent. Europeatweb, an internet-based fund controlled by Bernard Arnault, the LVMH boss, has about 10 percent.
Responding to lobbying by the big bookmakers that it should pay more tax, Betfair revealed that its overall contribution to the Exchequer during the year was £26.9 million, made up mainly of gross profits tax and corporation tax.
