Scientific Games Corporation (SGC) has introduced new controls to secure the leadership structures of the company should majority investor Ronald Perelman decide to completely divest his shareholding in the gaming technology group listed in Nasdaq.
SGC Governance announced that it had revised its corporate control plan by releasing an SEC filing, ensuring that the executive team of the company stays in place should Perelman decide to sell his 39 percent stake in SGC.
Following July ‘s declaration by ‘MacAndrews & Forbes, Perelman ‘s personal investment fund, that the finance tycoon had directly ordered a review of his entire investment portfolio, SGC opted to safeguard its leadership structures.
Identified as one of MacAndrews & Forbes’ imminent reviews alongside cosmetics maker Revlon, SGC allegedly ‘resetting the system’ in light of COVID-19’s disruptive effect on global markets and demand shifts.
The SEC filing shows that Group Chief Executive Barry Cottle and five Executive Officers will be guaranteed their full salary-based severance pay and bonuses should their job be terminated over the next 18 months.
SGC emphasised that its executive safeguards are ‘a standard, protective measure’ – ensuring the stability of its executive team during a ‘time of transition for the company.’
Concluding its filing, SGC claimed that it did not have any contact from MacAndrews & Forbes about a concrete plan or proposal for its investment in SGC.