Scientific Games seals executive pay protection plan
Supplier beefs up severance package insurance as chair Ronald Perelman remains open to selling majority stake
Scientific Games execs will receive lucrative severance and bonus pay if forced to leave the supplier amid a takeover after a new ‘change in control’ protection plan was filed.
The SEC filing defines a ‘change in control’ as a third party acquiring at least 30% of common stock in Scientific Games.
The protection amendment covers the most senior members of the supplier’s board, including president and CEO Barry Cottle and CFO Michael Eklund.
Lottery EVP Patrick McHugh, gaming EVP Matthew Wilson, chief legal officer James Sottile and chief accounting officer Michael Winterscheidt would also be protected under the plan.
If one of the executive’s employment is terminated within 18 months following a change in control, without cause or good reason, they would be entitled to cash severance payments equal to their base salary.
In terms of bonus payments, each executive would be entitled to their highest bonus earned over the last two fiscal years, multiplied by two for Cottle and Wilson, and multiplied by one and a half for the other management members.
All executives would also receive a pro-rata bonus payment for the fiscal year they exit Scientific Games, as well as continued medical coverage for the length of their severance period and accelerated vesting of all their equity awards.
The filing follows confirmation that Scientific Games chair Ronald Perelman is open to selling his 39% stake in the Las Vegas-based supplier.