Jason Robins of DraftKings was provided with $2.2 million for security and travel, as well as $61,000 worth of event tickets.
DraftKings (NASDAQ: DKNG) shelled out more than $2.22 million for air travel and security expenses for co-founder and CEO Jason Robins in 2023, and the perks for top executives don't stop there.
The $2.22 million the sportsbook operator forked over for its CEO's private flights and security exceeded the roughly $2 million they shelled out for the same items in 2022, as documented in a Schedule 14A filing with the Securities and Exchange Commission (SEC) last month.
The filing reveals that for Mr. Robins: "$1,114,762 for security costs, $1,112,973 for air travel costs, $9,900 for our matching contribution made under our 401(k) plan, $15,925 for financial planning services, $61,095 for the purchase of tickets, travel and accommodations to Company-sponsored events during the year, and $353,335 for tax reimbursements related to the aforementioned items, where applicable."
Some of the $61,095 likely went towards Robins' attendance at the 2023 Super Bowl. Not to forget the $25,948 in financial planning services and retirement plan contributions, which might bother some DraftKings investors since Robins is an estimated billionaire.
Skyrocketing Stock Despite Executive Stock Sales - Robins Booked $8.18M from Sales - DraftKings Up 20.4% YTD, 93.8% YTD
Robins and his co-founders Matt Kalish and Paul Liberman's shares of DraftKings have soared, despite them being major sellers of the stock.
On April 22, Robins sold 200K shares of DraftKings, raking in $8.18 million in the process, as per a Form 144 filing with the SEC. The stock shot up 20.4% year-to-date and 93.8% year-to-date, making it one of the top-ranking gaming equities over those periods.
In fiscal 2023, DraftKings bestowed approximately $18 million in performance and restricted stock units and annual incentives on Robins. Kalish received north of $11 million in such compensation, while the operator granted more than $10 million in performance and restricted units and annual incentives for the other executives, according to the Schedule 14A document.
Equity-based compensation is quite a perk for these execs as they're typically granted options at prices substantially below market value. The DraftKings proxy filing discloses that Robins could exercise options granted in 2025 through 2029 at prices ranging from 63 cents to $4.70. The current stock price hovers around $42.50.
Some would contend that Robins' $1 annual salary is merely a public relations stunt, considering that he and his fellow co-founders are handsomely rewarded in stock. However, DraftKings loyalists might accept this compensation structure because the stock has almost quadrupled in less than two years.
Potential Controversy with DraftKings' Spending
It's undeniable that Robins is the face of DraftKings and holds the majority of the company's voting shares. This makes the board of directors content with funding his private air travel and security.
The audit committee and the compensation committee of the Board approved this arrangement thanks to the security program requirement that Robins and his family must travel privately and their belief that this setup enhances efficiency, flexibility, and ensures safety, confidentiality, and privacy.
Kalish and Liberman are less well-known. This could lead to concerns about the $375,150 DraftKings spent on security for Kalish in fiscal 2023. The company also splurged almost $20K on 401(k) contributions and over $28K on financial planning for these two co-founders.
Read also:
- Games Industry Research: Carbon Emissions of Top Video Games
- U.S. cities with the most Swifties per capita
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
Source: www.casino.org
