GVC Executive Committee Agree 20% Pay Reduction

FTSE250 GVC Holdings has reported that members of its Executive Committee will receive a 20 percent reduction in pay, although some employees have agreed to relinquish a bonus for 2020 as well.

The Board of GVC and the Remuneration Committee announced that it would be ‘appropriate’ for both the Board of Directors and the Executive Committee to pledge a three-month reduction in the basic salary and fees.

Bonus payments were due to be voted on at the Annual General Meeting of GVC which was supposed to take place yesterday but this was delayed due to the pandemic.

It comes as the company looks to minimise the global pandemic’s effect on their overall business strategy.

GVC governance estimated during April that its EBITDA will decline by £50 m per month, which is a substantial drop from the original £100 m forecasted in March. The decline came after a number of mitigating measures continued by the gambling community in light of the COVID-19 pandemic.

The group indicated that the closing of retail outlets and the widespread cancellation of sports has ‘significantly reduced revenue from mid-March’ following a good showing at the beginning of the year.