The board of directors of Tabcorp Holdings has defended the remuneration and bonus package awarded to the company’s CEO, Gillon McLachlan.
Concerns over the structure of his compensation were raised by the Australian Shareholders’ Association (ASA) – the national body overseeing corporate governance.
The former head of the Australian Football League (AFL) took over as Tabcorp CEO in late 2024, following the departure of former chief executive Adam Rytenskild, who resigned amid allegations of inappropriate behaviour and offensive language.
Despite ASA’s objections, Tabcorp shareholders overwhelmingly supported McLachlan’s remuneration plan. At the company’s annual general meeting, 96% voted in favour of his long-term share options, while 99% approved the remuneration report.
The ASA had warned of “potentially excessive payouts” if McLachlan met his performance targets by 2027, estimating that the CEO could earn up to AUD 16–18 million (€9–11 million) in cash and vested options should pre-tax earnings increase by 10%.
Tabcorp Chairman, Brett Chenoweth, dismissed the criticism, stating that McLachlan’s remuneration reflects the board’s confidence in his leadership and the executive team’s ability to deliver long-term value for shareholders.
“Gillon has brought a new energy, sharper focus, and real clarity of purpose to Tabcorp,” Chenoweth said. “The business is now back on track, shifting from a period of rebuilding to one of strategic growth.”
Under McLachlan’s first year of leadership, Tabcorp reported a strong financial performance – with group revenue up 11.8% to AUD $2.6bn (€1.55bn) and net profit after tax climbing 76.8% to AUD $49.5m (€29.5m) in FY2025.
Further results saw McLachlan underline that Tabcorp had achieved operating savings of AUD $31m (€18.5m) and a debt reduction of approximately AUD $250m (€150m).
Analysts continue to monitor Tabcorp’s performance closely, assessing how Gillon McLachlan’s turnaround strategy will reshape a business that recorded two consecutive years of losses exceeding AUD $600m (€355m) prior to his appointment.
Once dubbed the “sick man of the ASX,” Tabcorp failed to deliver strategic or shareholder value following its much-touted merger with Tatts Group in 2017.
It was widely anticipated that the merger would create a dominant Australian wagering and lottery powerhouse. However the merger was soon split in 2022, as investors acknowledged that it had failed to deliver any value.
Tabcorp presented its first full-year results under McLachlan’s leadership in August, during which the CEO outlined his “relentless ambitions” to restore the company as Australia’s highest-valued gambling business, signalling a more disciplined focus on profitability, digital growth, and retail renewal.
“We are a fitter, leaner organisation with clear accountability and stronger execution,” he told analysts, in what was described as a coach-like team talk to investors.
Industry observers note that McLachlan’s leadership style reflects his AFL background – driven by structure, motivation, and performance culture.
Under his direction, Tabcorp has prioritised a “back-to-basics” approach aimed at rebuilding consumer trust, cutting legacy costs, and competing more effectively with global digital betting groups that have eroded its market share in Australia.
For now, shareholders appear satisfied. With near-unanimous support at the AGM, McLachlan’s position and pay plan have been firmly endorsed as Tabcorp enters what its board calls a “new phase of disciplined growth and transformation.”
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