The chief executive of Betfair has scooped an £11.6 million jackpot from his long-term incentive scheme at the betting exchange.
Breon Corcoran’s total package compares with only £1.3 million in pay and bonuses last year, making him one of the most richly rewarded bosses at a UK-listed company, experts said.
The understated Irishman, who has a background in banking, has beaten all the targets set under his long-term performance scheme, meaning that he will pocket £10 million on top of his base pay and annual bonus.
Mr Corcoran, the son of teachers who has described himself as a failed entrepreneur, has been credited with transforming the company, which is listed on the FTSE 250 index, since he joined from Paddy Power, its rival, three years ago.
Betfair’s share price, which collapsed from its £13 float price in 2010 after a surprise regulatory crackdown on the sector in the United States, has galloped to almost £26 since the board saw off a possible 975p-a-share bid from CVC, the private equity firm, in 2013. Share awards made up the vast bulk of Mr Corcoran’s total pay. His salary rose from £515,000 to £528,000 and his annual bonus from £681,000 to £953,000.
Nick Batram, an analyst at Peel Hunt, said that Mr Corcoran “wasn’t the cheapest hire, but he’s clearly done well and shareholders have done well by him . . . I don’t think you will find any shareholders complaining.”
Luke Hildyard, deputy director of the High Pay Centre think tank, said that Mr Corcoran’s pay package probably would be among the highest for domestically quoted companies. “It’s a pretty extraordinary amount and totally disproportionate,” he said.
Last month, the company posted a 32 per cent jump in full-year underlying earnings to £120.2 million and a 21 per cent increase in revenues to £476.5 million. It increased the total annual dividend by 70 per cent to 34p. That was on top of the £199.7 million returned to shareholders in January via the issue of B shares.
Shares in Betfair closed 61p higher yesterday at £25.87.