FanDuel, the American entertainment and betting giant, must pay a severance package of approximately $21.2 million following the dismissal of Amy Howe from her position as CEO.
Howe, who had led the company since 2021, was ousted this past May and replaced by Christian Genetski. The leadership change at FanDuel came amid a boom in prediction markets.
It was initially reported that Howe, a former McKinsey partner, was set to receive compensation of $4.37 million, equivalent to 24 months of salary plus bonuses, along with an undetermined amount of stock. However, the full details of the contract termination were not known at the time.
A recent financial report from Flutter Entertainment, FanDuel’s parent company, has revealed that the actual figure is much higher.
In addition to the main severance package, Howe is entitled to a Value Creation Award, a form of compensation granted upon her appointment in 2021. This amounts to about $11,473,165 in cash, according to the terms of the agreement.
FanDuel will also have to pay $1 million in legal fees.
When calculated using estimates based on Flutter’s share price at the time the agreement was signed, the severance package totals $21.2 million, nearly five times more than what had previously been reported.
However, Howe will have to comply with certain conditions, as the agreement includes provisions on confidentiality, non-disparagement, and non-solicitation of clients for 12 months.
This week, Flutter also announced the departure of its CEO, Peter Jackson. Jackson led the company through the Covid-19 pandemic, oversaw its rebranding to Flutter in 2019, and, more recently, its delisting from the London Stock Exchange. Since August 3rd, Flutter has traded exclusively on the New York Stock Exchange.