GAMBLING giant Entain is seeking to retrieve tens of millions in bonuses paid to former bosses after announcing it faces a more than half a billion pound fine over corruption allegations in its Turkish business.
The company, which owns Ladbrokes, Coral and Sportingbet, plans to find out if it can recoup bonuses paid to former board members, according to The Sunday Times.
Ex-CEO Kenny Alexander (pictured) was one of many who enjoyed incentives totalling £82m between 2011 and 2017, during which time the group was called GVC and operated a division in Turkey.
The group said it will launch an internal review into the feasibility of taking back the bonuses once the ongoing HMRC bribery investigation and criminal prosecution is finalised, according to a source.
Entain revealed on Thursday that it had set aside £585m for a potential settlement with British authorities regarding bribery offences in the Turkish arm, which was sold in 2017.
It is currently in negotiations for a deferred prosecution agreement with the Crown Prosecution Service following the HMRC investigation, which looked into GVC’s use of third-party suppliers processing payments allowing the company to offer online gambling services in Turkey.
Entain chair Barry Gibson said the events in question were well in the past and that today, the business is nothing like the one it was in 2017.
He said: “We have been working closely with the CPS throughout this process, and they have recognised our extensive co-operation. Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.” Allies of Alexander suggested he would not be implicated when the details of the case are published.
Entain told The Sunday Times: “Like any other business, Entain’s board has a duty to act in the best interests of the company and its shareholders.”
(c) 2023 City A.M., source Newspaper