As the U.K. based BWIN.Party continues the process of consolidating it’s operations, their stock price has been taking a significant hit. The struggling economy is considered a major contributing factor as the company’s market cap rate has contracted by approximately 40% under the current management team.
Controversial New Executive Bonus Program
Despite the outcries from over one-third of shareholders, the company announced on March 31 its intention to institute a new bonus program for executives. The new bonus packages were approved by stockholders in February. Three top executives, CEO Norbert Teufelberger, CFO Martin Weigold and non-executive director Manfred Bodner were all awarded significant stock bonuses. The bonuses were issued under two plans, the Bonus Banking Plan (BBP) and the Incentive Plan (BIP). Under these two plans, Teufelberger’s bonus equated to 1.735 million euros. From a public relations standpoint, this may not be a prudent move. However, management asserts that this is the only way the company can adequately compensate these executives.
Deal Inked with Williams Interactive
In an effort to offer customers a more diverse selection of slots and casino games, BWIN.Party signed a content deal with Williams Interactive, a subsidiary of Scientific Games Corp. The deal will allow integration of Williams Interactive’s remote game server. Customers in Europe and New Jersey will now have a larger group of games from which to choose.
In a final bit of news, BWIN.Party is in the process of moving their poker platform from the Ongame network. In 2012, BWIN.Party sold the Onegame platform to the Amaya Gaming Group, and began migrating their English based sites to PartyPoker. Over the next quarter, the will continue the migration by moving French and Italian sites onto the new platform. Eventually, BWIN.Party would like to have all their sites operating on the same platform. The PartyPoker brand is one of the most popular platforms across Europe.