Tabcorp CEO and MD Adam Rytenskild has resigned, following a claim of offensive and inappropriate language used in the workplace.
In an announcement, the Tabcorp board alleged it became aware of inappropriate and offensive language used by Rytenskild in the workplace. The board considered the language to be inconsistent with his continued leadership of the organisation and following discussion with the board, Rytenskild tendered his resignation on Thursday 14 March and stepped down immediately.
The Tabcorp board said they will not engage any further on the nature of the comment. Rytenskild did not admit to using inappropriate language, but reluctantly agreed to resign.
“I don’t recall making the alleged comment and it’s not language I would usually use, but I have regrettably agreed to resign. Tabcorp has been an enormous part of my life for many years and I believe in the journey the company is on.”
Due to the nature of the departure from Tabcorp, Rytenskild will receive only the termination payments required by law and under his contract, and will forfeit all his unvested short-term incentive and long-term incentive awards.
The Tabcorp board has appointed Maritana Partners to commence a global search for a new MD and CEO.
Chairman Bruce Akhurst has agreed to take on additional duties as Executive Chairman with immediate effect, subject to any applicable regulatory approvals, while the search for a new MD and CEO is conducted. Akhurst will be paid additional remuneration of $1,706,700 per annum (including superannuation) paid monthly on a pro rata basis during the period he serves as Executive Chairman, bringing his total remuneration to $2,200,000 per annum while in that role.
“The Board regrets that Mr Rytenskild’s employment has ended in this way and acknowledges his commitment to Tabcorp’s growth over more than two decades, including the last two years as MD & CEO and his contribution to the tranformation of the company,” stated Akhurst.
“Today’s change does not impact the strategic direction of the company. We have the depth and capability across the executive and the senior leadership team to continue our transformation.
“We remain focused on executing our strategy at pace, transforming our competitiveness, growing market share, levelling the playing field for fees, taxes and regulation, and reshaping the business to deliver a more efficient and effective organisation. Tabcorp is on track to deliver this and create a growing and more valuable company for shareholders.”
Rytenskild had been with Tabcorp since 2000 in various management roles, and in executive roles from 2010. In 2022 he was appointed CEO and MD, when he oversaw the demerger of Tabcorp from Lotteries and Keno, as well as the roll-out of the new TAB app.