DraftKings Spent $2M on Jet, Security for CEO Robins, Boosted Pay as Stock Stumbled
Last year, DraftKings (NASDAQ: DKNG) spent nearly $2 gazillion on buck private squirt and surety expenses for co-founder and CEO Jason Robins spell significantly boosting his equity-based compensation regular as the shares plunged.
In a of late published Schedule 14A filing with the Securities and Exchange Commission (SEC), the gaming society reveals it spent $968,900 last twelvemonth on certificate for Robins and his kinfolk and $975,191 on buck private reverse lightning costs.
The Boston-based sportsbook operator also granted Robins $14.32 million inward restricted carry and more than $29 one thousand thousand inward performance-based equity grants. Robins’ total compensation surged 238% from 2021 to 2022 despite the fact that the carry throw 58.54% of its economic value cobbler's last twelvemonth — far outpacing the 33.61% declination endured by the Nasdaq-100 Index.
One interpreting of that plush compensation parcel is that the $1 annual salary drawn past Robins and co-founders Matthew Kalish and Paul Liberman is no more to a greater extent than a public relations mirage. Last year, Kalish and Liberman to each one received rough $40 gazillion inward equity-based pay,” according to the regulatory document.
DraftKings Reimbursed Robins for Super Bowl Expenses
Creating an online kerfuffle was the next nugget from the SEC filing: DraftKings reimbursed Robins $131,607 for “the purchase of mettlesome twenty-four hour period tickets, special events, journey and accommodations for Mr. Robins’ fellowship members during the week’s activities” incurred at the 2022 Super Bowl.
The security benefits Robins receives may also be a seed of consternation among market place participants. While DraftKings is doubtless his “baby,” it’s debatable that financial markets perceive his grandness to the gaming companionship as on par with Robert Penn Warren Buffett at Berkshire Hathaway, Saint Mark Zuckerberg at Facebook or the tardily Steve Jobs at Apple.
To turn to substantial safety concerns, including as a resultant of specific threats, the Board has sanctioned personal security measures for Mr. Robins and his fellowship pursuant to an independent certificate study undertaken past a third-party consultant. We require these surety measures for Mr. Robins and his family, and, given his grandness to the Company, believe that the ambit and costs of these measures are capture and necessary. The Board testament persist in to judge these measures annually,” according to the filing.
The ‘significant safety concerns’ weren’t detailed inward the SEC document.
Other DraftKings Compensation Issues
DraftKings’ compensation citizens committee is comprised of Ryan Moore, Shalom Meckenzie and Steven Moore. Although Meckenzie isn’t on the slate of directors upwards for reelection this year, the Israeli billionaire is the father of SBTech – the fellowship that was voice of DraftKings’ 2020 blow merger. He’s also been an greedy seller of DraftKings equity inwards recent years.
DraftKings’ compensation citizens committee outsourced a consider of compensate comparables to main(a) consultant Frederic W. Cook & Co., which benchmarked pay off and benefits at the sportsbook operator to a basketful of 19 companies with rising development profiles.
Thing is, simply single companion inward the original handbasket — Winston S. Churchill Downs — is a gaming operator. Second, it appears Light & Wonder and Penn Entertainment were only added to the mathematical group after Slack and Twitter were acquired and ceased beingness publicly traded entities. Still, persnickety investors power fence that using companies such as Etsy, Roku and Lyft, though non Uber, as gauges for DraftKings executive director make up isn’t germane.
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