Ader representative elected to IGT board
Shareholders elect director from management group critical of IGT's online strategy.
IGT shareholders have elected a new director to the gaming supplier’s board from the Ader Group, which has previously been highly critical of the gaming supplier’s online strategy and share price drop.
Despite IGT issuing a letter to shareholders recommending the re-election of the board’s existing eight directors, Ader Group representative Daniel Silvers was elected in favour of David Roberson at an annual shareholder meeting on Tuesday.
The move will come as a blow to CEO Patti Hart, who was criticised in a letter by the Ader Group in January for allowing its share price to fall as a result of poor strategic decision making.
The letter also condemned the “incredibly expensive” acquisition of social casino company DoubleDown Interactive for up to $500m and argued for a return to IGT’s core land-based slots business instead of an online strategy supposedly leaving customers “alienated”, while also claiming the eight board members did not have enough gaming experience.
Hart said in a statement following the shareholder meeting: “IGT’s Board of Directors and management team have successfully charted a course for the company that is both strategically and financially sound. Since 2009, IGT has outperformed its peers, reversed its previous decline in ship share and driven an increase in market capitalisation, while strengthening its focus on product quality and innovation. This year IGT expects to build on its momentum and deliver its fourth consecutive year of double-digit growth in adjusted EPS from continuing operations.”
Silvers received the equivalent of approximately 112 million shareholder votes, which was more than that obtained by three of the other seven re-elected original board members.
Roberson received 84 million votes, while the Ader Group’s other two nominees, Raymond Brooks and Charles Mathewson, obtained 32 and 29 million votes respectively. Hart and board chairman Philip Satre each received 203 million votes, with IGT claiming 80% of its 265 million shares were voted at the meeting.
Jason Ader himself withdrew his candidacy for directorship in January, and IGT claimed that former IGT chairman Mathewson’s bid was motivated by a dispute with the company since his retirement in 2003.
Satre added: “I’d also like to take this opportunity to welcome Mr. Silvers to the Board. We look forward to working with Mr. Silvers toward our mutual goal of delivering value for all IGT shareholders.”