This was published 9 months ago
Tabcorp CEO steps down over alleged sexual comment towards regulator
By Amelia McGuire
Tabcorp boss Adam Rytenskild has abruptly stepped down after a board investigation following an allegation he used sexually inappropriate language about a female regulatory official.
Rytenskild, who has held executive positions at the wagering giant since 2010 and had been chief executive since the group demerged from its former cash cow, the Lottery Corporation, in 2022, resigned after a meeting with the board on Wednesday following a probe led by an external law firm at the board’s direction.
Tabcorp CEO Adam Rytenskild said he did not recall making the alleged remark.Credit: Dominic Lorrimer
Three sources who were not authorised to speak publicly said the investigation was launched two weeks ago after the board received a complaint from a staff member which alleged Rytenskild had made a sexual comment about an official working at a gambling regulator.
Two sources said the comment was in reference to a looming decision that would affect the profitability of the business. The sources said Rytenskild said he would perform a sexual act on the regulator if the decision went in the company’s favour.
“I do not recall making the alleged comment, and it’s not language I would usually use, but I have regrettably agreed to resign,” Rytenskild said on Thursday.
The investigation was launched this month after the Tabcorp board received a complaint that Rytenskild had spoken offensively about a person who does not work at the company.
“The Tabcorp board became aware of inappropriate and offensive language used by Rytenskild in the workplace. The board considered the language to be inconsistent with Rytenskild’s continued leadership of the organisation,” the group told the Australian Securities Exchange on Thursday.
Tabcorp declined to comment on Thursday night. Rytenskild could not be contacted.
The group confirmed Rytenskild would “receive only the termination payments required by law” and would forfeit his unvested short-term and long-term bonuses.
He was appointed chief executive in June 2022, and his annual salary was more than $2 million. He owns $3.36 million in Tabcorp shares. The circumstances surrounding his departure mean he stands to lose between $5 million and $10 million.
More than 30 per cent of the group’s shareholders voted against the size of Rytenskild’s remuneration at last year’s annual general meeting as it was more than the average for an ASX 200 company despite slipping performance.
Tabcorp chairman Bruce Akhurst will act as executive chairman while the business launches a global search for his replacement. The search is being undertaken by Maritana Partners.
“The board regrets that Rytenskild’s employment has ended in this way and acknowledges his commitment to Tabcorp’s growth over more than two decades,” Akhurst said.
Tabcorp is in the midst of a five-year plan to bolster its digital marketshare following exponential growth by rival corporate bookmakers over the past decade.
The company holds the exclusive licence to retail wagering in Victoria, NSW and Queensland but struggled to assert the same level of dominance in the face of international groups including Irish giants Flutter (the owner of Sportsbet) and Entain (which owns Ladbrokes and Neds).
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.