Tabcorp gets first strike over executive pay, shares slide

The news: Shareholders in gambling giant Tabcorp have lodged a first strike against the company's executive pay, with more than 34% voting in protest. A strike requires a 25% vote against a resolution, and a second strike at next year's AGM would lead to a spill motion.

The numbers: Tabcorp shares dropped 3.5% to trade at $0.82 at 1:30pm AEDT and have lost more than a quarter of their value in 2023. In August, the group posted a $67 million profit in its first full-year results following its demerger from the Lottery Corporation in May 2022.

The context: Tabcorp warned of softer market conditions earlier this month, and noted the sale of its eBet business and the costs of transforming its wagering business would temporarily weigh on profits.

What they said: "The Board has been very focused on maintaining alignment between management and shareholders, and has implemented what it believes are appropriate incentives against demanding targets for management to deliver the expected benefits for shareholders," chair Bruce Akhurst told shareholders at Tabcorp's AGM today.