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DraftKings Continues Lavish Compensation For CEO Robins

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Posted on: March 29, 2023, 05:38h. 

Final up to date on: March 29, 2023, 05:38h.

Final 12 months, DraftKings (NASDAQ: DKNG) spent practically $2 million on personal jet and safety bills for co-founder and CEO Jason Robins whereas considerably boosting his equity-based compensation even because the shares plunged.

DraftKings salaries
DraftKings founders from left Matt Kalish, Jason Robins and Paul Liberman. They had been granted greater than $120 million in stock-based pay final 12 months because the shares tumbled. (Picture: Inc.com)

In a just lately revealed Schedule 14A submitting with the Securities and Alternate Fee (SEC), the gaming firm reveals it spent $968,900 final 12 months on safety for Robins and his household and $975,191 on personal jet prices.

The Boston-based sportsbook operator additionally granted Robins $14.32 million in restricted inventory and greater than $29 million in performance-based fairness grants. Robins’ complete compensation surged 238% from 2021 to 2022 even if the inventory shed 58.54% of its worth final 12 months — far outpacing the 33.61% decline endured by the Nasdaq-100 Index.

One interpretation of that lavish compensation package deal is that the $1 annual wage drawn by Robins and co-founders Matthew Kalish and Paul Liberman is not more than a public relations mirage. Final 12 months, Kalish and Liberman every obtained roughly $40 million in equity-based pay,” in response to the regulatory doc.

DraftKings Reimbursed Robins for Tremendous Bowl Bills

Creating a web based kerfuffle was the next nugget from the SEC submitting: DraftKings reimbursed Robins $131,607 for “the acquisition of recreation day tickets, particular occasions, journey and lodging for Mr. Robins’ relations in the course of the week’s actions” incurred on the 2022 Tremendous Bowl.

The safety advantages Robins receives might also be a supply of consternation amongst market members. Whereas DraftKings is undoubtedly his “child,” it’s debatable that monetary markets understand his significance to the gaming firm as on par with Warren Buffett at Berkshire Hathaway, Mark Zuckerberg at Fb or the late Steve Jobs at Apple.

To deal with important security issues, together with on account of particular threats, the Board has accredited private safety measures for Mr. Robins and his household pursuant to an unbiased safety examine undertaken by a third-party advisor. We require these safety measures for Mr. Robins and his household, and, given his significance to the Firm, imagine that the scope and prices of those measures are applicable and mandatory. The Board will proceed to guage these measures yearly,” in response to the submitting.

The ‘important security issues’ weren’t detailed within the SEC doc.

Different DraftKings Compensation Points

DraftKings’ compensation committee is comprised of Ryan Moore, Shalom Meckenzie and Steven Moore. Though Meckenzie isn’t on the slate of administrators up for reelection this 12 months, the Israeli billionaire is the founding father of SBTech – the corporate that was a part of DraftKings’ 2020 reverse merger. He’s additionally been an avid vendor of DraftKings fairness in recent times.

DraftKings’ compensation committee outsourced a examine of pay comparables to unbiased advisor Frederic W. Prepare dinner & Co., which benchmarked pay and advantages on the sportsbook operator to a basket of 19 corporations with rising progress profiles.

Factor is, only one firm within the authentic basket — Churchill Downs — is a gaming operator. Second, it seems Gentle & Surprise and Penn Leisure had been solely added to the group after Slack and Twitter had been acquired and ceased being publicly traded entities. Nonetheless, persnickety traders may argue that utilizing corporations corresponding to Etsy, Roku and Lyft, although not Uber, as gauges for DraftKings government pay isn’t germane.

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