Bet365 CEO Denise Coates' AUD 470 Million Pay Package Sparks Controversy
The fall in the pay package of Denise Coates came as the gambling company spent heavily on expansion. Photograph: Felix Clay
In a stunning revelation, Bet365 CEO Denise Coates took home an astronomical pay package of over £260 million in the year leading up to March 2022, according to the company's latest accounts. This figure, while jaw-dropping, marks a significant drop from the record-breaking £471 million she received in 2020. Coates, who founded Bet365 in a modest portable building in Stoke-on-Trent in 2000, has emerged as one of the world's highest-paid executives. This article delves into the details of her remarkable compensation and the ensuing controversy it has ignited.
Denise Coates' journey from a small betting shop chain to the helm of one of the largest online gambling empires is nothing short of extraordinary. After earning a first-class degree in econometrics from the University of Sheffield, she expanded her family's Provincial Racing chain to nearly 50 betting shops. However, her vision for the future of betting lay online. She made a pivotal move by acquiring the Bet365.com domain on eBay for $25,000 (£19,000), which ultimately propelled her and her family into the upper echelons of the UK wealth league.
In the year leading up to March 2022, Denise Coates received a staggering £213 million as her salary. Additionally, as the controlling shareholder of Bet365, she was entitled to at least 50% of the £100 million in dividends paid out during the same period. While her £263 million annual compensation is undeniably immense, it reflects a 12% decrease compared to the £300 million she received in 2021. This dip can be attributed to the company's decision to allocate fewer profits as it invested heavily in international expansion projects.
Denise Coates' colossal pay package has triggered intense debate and criticism. Luke Hildyard, the director of the High Pay Centre, an organisation advocating restraint in executive pay, expressed his concern over such vast wealth accumulating in the hands of one individual. He argued that extreme payouts of this magnitude lack both moral and economic justification and contribute to societal inequality and division. At a time when many people in the UK and around the world are grappling with the rising cost of living, Coates' exceptional earnings have intensified the scrutiny on executive compensation.
In the latest financial year, Bet365's profits experienced a significant drop, with a pre-tax profit of £49.8 million, primarily attributed to £320 million in additional "administration expenses." These expenses covered various costs, including advertising in new markets and investments in infrastructure to support expansion. Despite the dip in profits, the company saw a 2% increase in gambling revenues, driven by a 25% surge in online games revenues, which offset a 2% decrease in sports betting revenues.
Denise Coates' £260 million pay package for the year to March 2022 has thrust her into the spotlight once again as one of the world's highest-paid executives. Her remarkable journey from a modest betting shop chain to the pinnacle of the online gambling industry has been marked by extraordinary success. However, her earnings have also ignited a heated debate about executive compensation and income inequality. As the world continues to grapple with economic challenges, Coates' astronomical pay serves as a reminder of the broader discussions surrounding wealth distribution and corporate responsibility.
