Ex Tabcorp boss claims he was forced to quit despite denial of lewd comments

Tabcorp’s disgraced ex-boss Adam Rytenskild has told the Fair Work Commission he was forced into resigning by the wagering company in March for allegedly making vulgar comments towards a female regulatory official eight months earlier.

Rytenskild launched unfair dismissal proceedings against Tabcorp at the Fair Work Commission last week. In cross-examination on Wednesday, Rytenskild said he was ambushed by company chair Bruce Akhurst, and directors Raelene Murphy and David Gallop, who told him that an external review had substantiated a whistleblower complaint on the alleged comments.

Tabcorp CEO Adam Rytenskild resigned following an investigation into his conduct.Credit: Dominic Lorrimer

Tabcorp’s board engaged a law firm to conduct the review after it received a complaint referring to alleged comments by Rytenskild that referred to performing a sexual act on the chief executive of the Victorian Gambling and Casino Control Commission, Annette Kimmitt, if Tabcorp secured a 20-year extension to the Victorian wagering licence.

Rytenskild said he resigned, “in a panic” on March 14 because the board had made it clear that he had no other option other than being sacked, irrespective of his denials of the alleged comments.

“I denied it in three ways. I said I didn’t say it. I said I don’t recall it … And I said I don’t use language like that so why would I have suddenly chosen to,” Rytenskild told the tribunal’s deputy president, Gerard Boyce.

He added that his requests for more time so that he may consult a lawyer were denied.

Tabcorp’s barrister, Vanja Bulut, argued that Rytenskild could not have been unfairly dismissed given he requested to resign of his own volition. She also said Akhurst had provided context that termination was the likely outcome given the nature of the allegations. She also pointed out that Rytenskild had waited until the very last moment to lodge his claim against Tabcorp.

Rytenskild, who had 24 years at Tabcorp, was paid out for a six-month notice period following his resignation in March, which amounted to $750,000, half his base salary of $1.5 million. He forfeited between $5 million and $10 million in unvested shares and options. He has also foregone bonuses that could have doubled his earnings to $3 million a year.

Rytenskild told the court that the law firm carrying out the review did not interview him about the alleged incident, adding he first found out about the allegation on the morning of the day he was forced to quit.

“[Akhurst] said at various times that I would be terminated and that it was likely the board would decide to terminate me later that day if I did not resign,” he said.

“I was panicked. I had all sorts of emotions … I was worried about my reputation and the way they were talking was that they would terminate me without giving me a dime.”

The court heard the initial complaint against Rytenskild was substantiated by testimonies of two Tabcorp employees – head of risk John Fitzgerald and head of regulation Joel Williams – who were present when the alleged comments were made, as well as a contemporaneous note issued to human resources.

The court also heard a series of WhatsApp messages between Rytenskild and his wife, AGL’s chief people officer Amanda Lee, ahead of his resignation where she cautioned him to not sign anything and to ask for input in the way his departure would be communicated to the public.

She also passed on instructions from her two spiritual advisers, who told Rytenskild to put garlic in his pocket for good luck. She said neither spiritual adviser had seen this coming.

He later texted: “I think all I can do is resign, saying I don’t recall or condone the alleged comments but say it’s untenable for the company given what’s been alleged.”

Lee responded: “we need to protect you. I’m working on your story. Do not sign anything without legal advice.” She also said, “we need a story to minimise damage to you”.

Bulut told the tribunal Rytenskild’s decision to resign was “unambiguous” and that he had clearly sought counsel from his wife, an experienced HR executive. She was interrupted by deputy president Boyce at various points after she said Rytenskild was given hours to deliberate before coming to the decision to quit.

“We say it’s clear there was no forced resignation. No one called for it. No one encouraged it. He asked for it. There is no element of forceful compulsion,” she said.

Rytenskild’s barrister, Kim Anderson, likened the situation to a stick-up robbery and said, “not only did Tabcorp load the trigger, but they prepared the coffin”, in reference to Tabcorp’s choice to draft and publish the ASX disclosure on the same night. He said it was incontrovertible Rytenskild was forced to resign.

Boyce said he would publish his decision in the coming weeks.

The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.