PartyGaming Million Dollar Chairman
Published: Friday, June 10, 2005 Online-Casinos.com
PARTYGAMING MILLION DOLLAR CHAIRMAN
Party Gaming's chairman under fire from investors
The ripples from the Party Gaming IPO reach into some unexpected areas it appears
from some reports in the British financial press, which this week alleged that
the FTSE software firm SAGE's major shareholders are less than pleased with
their chairman Michael Jackson for helming Party Gaming's projected GBP 5.5
million coming listing on the London stock market.
Top investors are allegedly calling for Jackson to step down as chair of the
controversial gambling firm after just three weeks on the job, and they're calling
for his resignation.
Others believe Jackson cannot devote enough time to his software firm responsibilities.
"Jackson's new role will be significantly time-consuming," one institutional
investor claimed.
Shareholders are also angered by Jackson's multiple chairmanships. PartyGaming
will be in the FTSE 100 after it floats, meaning he will chair two companies
in the leading index - contravening strict corporate governance guidelines.
Jackson is also chairman of venture capital outfit Elderstreet Investments,
four quoted AIM firms and the unquoted software firm SearchSpace. Sage's leading
shareholders, which include Morley Asset Management, Legal and General and M&G,
now question Jackson's decision to chair PartyGaming.
Two of Sage's big institutional investors have launched an investigation into
his new role. One said: "Our corporate governance people are probing it."
Jackson, 55, will receive a salary of GBP 500,000 a year plus a GBP 1 million
bonus for getting PartyGaming's float successfully completed. He earns GBP 143,000
at Sage.
RREV, the National Association of Pensions Funds' research arm, said Sage's
board should explain its decision to allow Jackson to become chair of the online
gambling company.
Sage said Jackson had discussed his position with the company's senior non-executive
director, Lindsay Bury, while PartyGaming added it was satisfied that Jackson
had "...capacity for his roles".
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