Embracer proposes board pay hike after profits plunge
Embracer Group's nomination committee has proposed a significant pay increase for its board of directors, days after the Swedish video game company reported a steep drop in quarterly profit.
According to a company filing ahead of its annual general meeting, the proposal would raise total board remuneration, excluding committee work, by over 30% to 9.8 million Swedish kronor from 7.5 million kronor the previous year.
The proposed fee for the board chair would increase to 2.5 million Swedish kronor, while pay for other directors would rise to 800,000 kronor.
The proposal also keeps in place a special "Transformation fee" for the board's work on splitting the company into three separate entities, the filing showed.
The move comes after Embracer last week reported an 87% plunge in first-quarter adjusted operating profit and cut its full-year forecast.
The board also proposed carrying forward all available profits, meaning no dividend will be paid to shareholders.
Co-founder Lars Wingefors, who is stepping down as CEO, has been proposed as the new chair of the board.
Shareholders will vote on the proposals at the company's annual meeting on Sept. 18.
More from this issuer
Related coverage
Embracer Group said Monday it will provide its video game unit Coffee Stain Group with 500 million Swedish Kronor in net cash as it prepares to spin off the business in a separate stock market listing.
Embracer Group reported a 79% plunge in second-quarter adjusted operating profit, as weak performance from new video game releases weighed on results amid a major corporate restructuring.
Embracer Group shareholders on Monday approved the spin-off of its Coffee Stain video game unit, advancing the Swedish company's plan to split into three separate publicly listed entities.
Embracer Group has published an information brochure for the planned spin-off of its Coffee Stain video game unit, moving forward with a key part of its major restructuring plan.