The board of Tabcorp Holdings has defended the remuneration and rewards plan awarded to its CEO, Gillon McLachlan.

Concerns over McLachlan’s pay structure were raised by the Australian Shareholders’ Association (ASA), the country’s corporate governance watchdog. This has raised questions over whether McLachlan has been overcompensated. 

The former boss of the Australian Football League (AFL), McLachlan was headhunted by Tabcorp in late 2024 to take the reins following the high-profile exit of former CEO Adam Rytenskild, who departed amid allegations of severe inappropriate behaviour and offensive language.

Despite ASA opposition, Tabcorp shareholders have overwhelmingly backed McLachlan’s pay plan. At the company’s AGM this week, 96% voted in favour of his long-term incentive options, while 99% approved the remuneration report.

The ASA had warned against what it described as “potentially excessive payouts” if McLachlan’s performance targets are achieved by 2027, estimating that the CEO could earn up to AUD $16–18m (€9m-€11m) in cash and vested options should pre-tax earnings rise by 10%.

Tabcorp Chairman, Brett Chenoweth, dismissed the criticism, stating that McLachlan’s remuneration reflects the board’s confidence in his leadership and the executive team’s ability to deliver long-term value for shareholders.

“Gillon has brought a new energy, sharper focus, and real clarity of purpose to Tabcorp,” Chenoweth said. “The business is now back on track, shifting from a period of rebuilding to one of strategic growth.”

Under McLachlan’s first year of leadership, Tabcorp reported a strong financial performance — with group revenue up 11.8% to AUD $2.6bn (€1.55bn) and net profit after tax climbing 76.8% to AUD $49.5m (€29.5m) in FY2025.

Further results saw McLachlan underline that Tabcorp had achieved operating savings of AUD $31m (€18.5m) and a debt reduction of approximately AUD $250m (€150m).

Analysts continue to monitor Tabcorp’s performance closely, assessing how Gillon McLachlan’s turnaround strategy will reshape a business that recorded two consecutive years of losses exceeding AUD $600m (€355m) prior to his appointment.

Once dubbed the “sick man of the ASX,” Tabcorp failed to deliver strategic or shareholder value following its much-touted merger with Tatts Group in 2017. 

It was widely anticipated that the merger would create a dominant Australian wagering and lottery powerhouse. However the merger was soon split in 2022, as investors acknowledged that it had failed to deliver any value.

Tabcorp presented its first full-year results under McLachlan’s leadership in August, during which the CEO outlined his “relentless ambitions” to restore the company as Australia’s highest-valued gambling business, signalling a more disciplined focus on profitability, digital growth, and retail renewal.

“We are a fitter, leaner organisation with clear accountability and stronger execution,” he told analysts, in what was described as a coach-like team talk to investors.

Industry observers note that McLachlan’s leadership style reflects his AFL background — driven by structure, motivation, and performance culture. 

Under his direction, Tabcorp has prioritised a “back-to-basics” approach aimed at rebuilding consumer trust, cutting legacy costs, and competing more effectively with global digital betting groups that have eroded its market share in Australia.

For now, shareholders appear satisfied. With near-unanimous support at the AGM, McLachlan’s position and pay plan have been firmly endorsed as Tabcorp enters what its board calls a “new phase of disciplined growth and transformation.”