US Edition 
Bwin.party calls EGM to clear pay deal
Online gaming group wants to award chief five and a half times his base salary
Online gambling group bwin.party has outlined plans to award top executives up to 550pc of their annual salary as some existing bonus plans have become worthless.
In a circular sent to investors last week, the company is seeking approval to award chief executive Norbert Teufelberger a maximum of five and a half times his base salary of £500,000 if targets are met.
Martin Weigold, the finance chief, could receive up to 435pc of his £446,000 annual salary.
Shareholders will get a chance to vote on the plan at an extraordinary general meeting in Gibraltar, where the company is based, on February 24. UK investors can vote online by February 22.
If agreed, the new incentive plan, or BIP, would replace two existing plans established in March 2011, when bwin Interactive Entertainment merged with PartyGaming.
One of these two schemes – the value creation plan – awarded senior management shares depending on the performance of the share price.
It had to reach a minimum of 202p for awards to executives to kick in, the most recent remuneration report for the year ended December 31, 2012 disclosed.
But Bwin.party shares have fallen by more than 40pc to around 111p since 2011’s merger. The gambling group said during the first six months of 2013 that online bets more than halved in Germany due to the introduction of a betting tax. Overall the company saw the number of active daily players fall by a quarter during the six months ended June 30.
In the circular on the new scheme, bwin.party said: “The board considers the plan to be in the best interests of the company, shareholders and depositary interest holders as a whole.” It added that it had carried out discussions with about 60pc of shareholders.
The group will need support from more than 75pc of votes cast at the February meeting to pass the new bonus plan.
Last October, it was announced that Russ DeLeon and Ruth Parasol, who set up PartyGaming in 1997, would be selling their combined 14pc stake as part of a divorce settlement. The shares are to be sold during the next three years.
Mr Teufelberger was called in for police questioning while attending a gaming conference in Brussels last year following allegations bwin.party was taking bets “illegally” from Belgian punters. He was released without charge.